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.

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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