Question 2 (4 points) You are an analyst for a U.S. pension fund. Your supervisor has asked you to value the stocks of GA and GB. You want to evaluate the appropriateness of the DDM model for valuing GA and GB and has complied the following data for the two companies for 2012 through 2019. GA GB Payout Ratio 0.40 0.40 0.60 Yew 2019 2018 2017 2016 2015 2014 2013 2012 EPS (5) DPS (5) 2.17 1.15 1.99 103 1.76 0.91 1.61 087 1.55 0.77 151 0.73 14 066 127 0.57 Payout Ratio 033 0.52 0.52 0.51 0.50 0:48 0.47 0.45 EPS (5) 4.94 5.03 3.35 -68.45 --3.50 -18.50 177 660 DPS (5) 2.00 2.00 2.00 1.00 1.00 2.00 2.00 2.00 -0.01 -0.29 -0.11 11 0.30 For each of the stocks, explain whether the DDM is appropriate for valuing the stock. Briefly explain why or why not! Question 2 (4 points) You are an analyst for a U.S. pension fund. Your supervisor has asked you to value the stocks of GA and GB. You want to evaluate the appropriateness of the DDM model for valuing GA and GB and has complied the following data for the two companies for 2012 through 2019. GA GB Payout Ratio 0.40 0.40 0.60 Yew 2019 2018 2017 2016 2015 2014 2013 2012 EPS (5) DPS (5) 2.17 1.15 1.99 103 1.76 0.91 1.61 087 1.55 0.77 151 0.73 14 066 127 0.57 Payout Ratio 033 0.52 0.52 0.51 0.50 0:48 0.47 0.45 EPS (5) 4.94 5.03 3.35 -68.45 --3.50 -18.50 177 660 DPS (5) 2.00 2.00 2.00 1.00 1.00 2.00 2.00 2.00 -0.01 -0.29 -0.11 11 0.30 For each of the stocks, explain whether the DDM is appropriate for valuing the stock. Briefly explain why or why not