The earning growth rate is projected at 30% for the first four years: After that, the growth rate will become more reasonable at 7% per year for the foreseeable future. The 40% of earning was paid out as dividend for year 2019 (From Income Statement). The dividend will be increased at the earning growth rates. The required rate of return (discount rate) is 12.5% I In addition to the calculated share price based on real/projected data, there are a number of other important factors to consider in order to make IPO a success. These factors include, first of all, the general market performance. In general, IPO is less likely to be successful in a bear market than in a bull market environment. So, the timing of taking a company public is very important. The second factor is the performance of the industry the company is in. If financial performance of the companies in the same industry is performing well then, your IPO is most likely to be a successful event. Otherwise, you would have harder time to raise money. Tederal mandate? Why? (6 marks) 4. Use the most appropriate valuation model to calculate the expected share price of ABC Corporation using all the variables provided on page 2. (Keep 4 decimal points for intermediate calculation and round your final answer to two decimal points) (15 marks)