Question: please help me to answer the question. An analyst is trying to value a high growth company , Zara INC. He has collected the relevant

please help me to answer the question.

please help me to answer the question. An analyst is trying to

An analyst is trying to value a high growth company , Zara INC. He has collected the relevant data found on the table below: Growth [for the first 5 years] 32% Growth [indefinite] 5% TSX index Jan 1, 2015 12542 Risk free rate 2.5% Beta 1.7 TSX index Dec 31, 2015 13950 Dividend payout 55% Net income $150,000 # of Shareholders 75000 Market Price $150 a) Calculate cost of capital [r] using CAPM b) Find D1,D2,D3 c) Find D4 d) Calculate V3 using D 4 e) Discount D1,D2,D3 and V3 f) Calculate share price. g) Is the share overvalued or undervalued

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