for this section, assume your discussions will be posted in a journal, which targets readers with low-moderate investment knowledge. Q1: Explain why the perpetuity formula is most appropriate to value preferred shares. Q2: Describe the random walk theory and indicate why it complicates an equity analyst's work. Q3: From the perspective of stock evaluation(s), explain why the time horizon has no impact on price of an equity today. Q4: Your neighbor insists that fundamental and technical analysis are synonymous- how would you respond (justify your answer)? Q5: A new colleague feels that a higher discount rate corresponds to an increase in stock price (according to the dividend discount model)- offer an opinion. Quantitative: (10 Points/Question) Q1: Create your own scenario (reference slide #3, Equities/Stocks_Part 2) and show why the stock is the same for a 1,2 and 3-YR evaluation. Q2: An investor is looking at the following stock, currently priced at $77.25- its metrics are as follows: next year's dividend = $3.25, plowback = $4.75 and ROE = 11.25%- should they buy the stock? Q3: WXB Inc. has earnings/share (EPS) of $7 (next year), a discount rate = 10.5% and a return on projects = 13.5%; contrast the difference