please answer this qustion beasd on the table above

Online Assagment 1 - Word an , 14 1 21 E. - Aa A A Tulsi A. A X HA hs Calculation Questions on Stock Valuation (5 marks) For each company find the following (NOTE: Enter only the final mumber. Include a separate document that shows your work) XYZ Discount rate Historical growth rate of dividends ABC 0.144 0.3005 0.16 Not available. Cannot compute without dividends 0.045 42.4875 0.1 Not available. Cannot compute without dividends 48.875 Not available. Cannot compute without dividends Sustainable growth rate Fundamental value using dividend growth model with the historical growth rate Fundamental value using the dividend growth model with the sustainable growth rate Fundamental value using residual income growth model with the historical growth rate Fundamental value using the residual income growth model with the sustainable growth rate 576.996 Not available. Cannot compute without dividends 636363 500 (Sakal w Analysis Questions of Stock Valuation (3 marks) The stock valuation model referred to in the questions below relate to the whether the fundamental value is estimated with the dividend growth model or the residual income model, AND whether the growth rate is estimated with the historical growth rate or the sustainable growth rate. These estimates of the fundamental value are in the last four rows of the table above. Suppose the current price of ABC stock is as given in the table above, and the current price of XYZ stock is as given in the table above. 1. Assume dividends will continue to grow at the same rate for ABC stock. a. Explain which stock valuation model(s) you would choose? b. Given the current price, should you buy or sell ABC stock? 2. Suppose ABC has changed its products, and dividends will not grow at the same rate. a. Explain which stock valuation model(s) you would choose? b. Given the current price, should you buy or sell ABC stock? 3. Recall XYZ is a new company. a. Explain which stock valuation model(s) you would choose? b. Given the current price, should you buy or sell XYZ