Question: There are 2 methods for reducing the Terminal Values sensitivity to your Stable Growth assumption. One involves linking the stable growth rate and the payout

There are 2 methods for reducing the Terminal Values sensitivity to your Stable Growth assumption. One involves linking the stable growth rate and the payout ratio and the other involves linking the ROE and the discount rate. Describe how each method works (6 points) Please create an example for EACH method (10 points), calculating terminal values using the perpetuity formula to demonstrate how each method reduces the terminal values sensitivity to the stable growth assumption.

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