Question No. 2 3+3+1.5 A firm wishes to determine the Equity Value studying the following information- Year Expected beg. Book value Expected earnings Dividend Capital change 1 Tk 50 m Tk 20m Tk 40m Tk 8m 2 45m 10m 48m 7m 3 35m 15m 50m 5m 4 20m 25m 52m 3m The expected rate of return is 10% a)What is the equity value considering the most popular theoretical approach of stock valuation? b)Without considering the dividends can you calculate the equity value? What will be that approach called? How much will be the value? c) Do you find any difference in valuation in the two approaches? How much is that?