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

please help me to answer this question

please help me to answer this 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] Growth [indefinite] TSX index Jan 1, 2015 Risk free rate Beta TSX index Dec 31, 2015 Dividend payout Net income # of Shareholders Market Price 32% 5% 12542 2.5% 1.7 13950 55% $150,000 75000 $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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