3. a. Differentiate between fundamental analysis and Technical Analysis 2 b. Why is the analysis of growth potential important to the common stockholder? Why is it important to the debt investor? c. How might a jewelry store and a grocery store differ in terms of asset turnover and profit margin? Discuss. d. Gentry Can Companys (GCC) latest annual dividend of $1.25 a share was paid yesterday and maintained its historic (1 +last digit of your student ID) percent annual rate of growth. You plan to purchase the stock today because you believe that the dividend growth rate will increase to 8 percent for the next three years and the selling price of the stock will be $40 per share at the end of that time. Required: i. How much should you be willing to pay for the GCC stock if you require a 12 percent return?

ii. What is the maximum price you should be willing to pay for the GCC stock if you believe that the 8 percent growth rate can be maintained indefinitely and you require a 12 percent return? iii. If the 8 percent rate of growth is achieved, what will the price be at the end of Year 3, assuming the conditions in Part b?