Question 3 a. Briefly explain the limitations of dividend growth model in terms of estimating growth and risk? b. Explain the relationship between a company's eamings and its stock valuation. c. Menhaz Khan is considering an investment in the common shares of StarLoom Designs, a dynamic and rapidly expanding fashion company. In her research, she expects that the firm will offer a dividend amounted to BDT 2.24 per share next year. Mehnaz also considers the possibility that due to the introduction of an avant-garde clothing collection, these dividends will experience a remarkable surge, growing at an impressive rate of 12% annually for the next 4 years. After this initial period, she assumes a transition to a steadier growth trajectory of 6% per year, a trend that is expected to continue into the foreseeable future. With her investment parameters in mind, Mehnaz sets a target return of 18%. What is the value of StarLoom Designs' common stock as per Mehnaz's estimation? If the current market price of the stock is BDT 25 per share, should Mehnaz buy StarLoom's stock? Why or why not