Question: SECTION 5- EQUITY ANALYSIS AND VALUATION This section must include the following details: a) Forecast the key variables needed to perform an accounting based valuation.

 SECTION 5- EQUITY ANALYSIS AND VALUATION This section must include the

SECTION 5- EQUITY ANALYSIS AND VALUATION This section must include the following details: a) Forecast the key variables needed to perform an accounting based valuation. (Kindly state all the assumptions made to derive the projected variables). b) Determine the cost of equity capital either using constant dividend growth model (DDM) or using the capital asset pricing model (CAPM). c) Using the data from Section 5a ), b) and an accounting based valuation, compute the fundamental value (intrinsic value) of the company. Compare the intrinsic value per share with the current market price to determine whether the company's stock is undervalued or overvalued. Make recommendation whether to buy or sell the company's shares. (Kindly state all the assumptions made to derive the projected variables in carrying out the accounting based valuation)

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