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Question 2(15 marks) You are considering to invest in Stock A and decide to use Constant Perpetual Growth Model for the evaluation of this stock.

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Question 2(15 marks) You are considering to invest in Stock A and decide to use Constant Perpetual Growth Model for the evaluation of this stock. You obtained the following information related to the stock and market: (a) Compute the following: i.ii.iii.Sustainablegrowthrate%.Appropriatediscountrate.Justifiedvaluepershare.(4marks)(4marks)(2marks) (b) Should you buy Stock A with existing price? Briefly explain. ( 2 marks) (c) Identify any THREE weaknesses for using constant perpetual growth model to evaluate stock price

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