Question: Complete the following tasks: a) The key to forecasting is to estimate the growth rate for the firm. What are four possible measures of growth

Complete the following tasks: a) The key to forecasting is to estimate the growth rate for the firm. What are four possible measures of growth available to the analyst, and how would you rate each of them in terms of their relevance for forecasting financial statements? Explain your answer with the help of an example. b) Consider the following information regarding Depression Ltd, a listed company on ASX in Australia. 2017 2018 2019 EPS $1.523 $1.675 DPS $0.810 $0.885 Book Value of share $22 Required Return on Equity 5.5% Share price on ASX $21.5 Required: a) Assuming Depression will close operations in 2 years time, value an ordinary share in this company using the Residual Income Method. b) Is Depression Ltd fairly valued on the ASX? Please explain fully your response.

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