(Solved): Question 3 a. Briefly explain the limitations of dividend growth model in terms of estimating growth ...

Question 3 a. Briefly explain the limitations of dividend growth model in terms of estimating growth and risk? b. Explain the relationship between a company's earnings and its stock valuation. (1.5) c. Menhaz Khan is considering an investment in the common shares of StarLoom Designs, a dynamic and rapidly expanding fashion company. In her research, she expects that the firm will offer a dividend amounted to BDT 2.24 per share next year. Mehnaz also considers the possibility that due to the introduction of an avant-garde clothing collection, these dividends will experience a remarkable surge, growing at an impressive rate of 12% annually for the next 4 years. After this initial period, she assumes a transition to a steadier growth trajectory