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please do part A with working if possible then do part a and if otherwise part a must You are an investment analyst with Growth Asset Managers Ltd, a fund management company. Your fund manager has assigned you the task of valuing the shares of BOLA Logistics Ltd, one of the stocks in his investment portfolio. He originally invested in the companys shares two years earlier due to the strong growth potential of the ecommerce sector which the company is heavily exposed to. Your current forecasts is for BOLA Logistics Ltd to enjoy a period of high growth over the next four (4 years) and deliver dividend per share of $0.65 (D1), $0.85 (D2), $0.98 (D3) and $1.13 (D4) before settling down to a long-term sustainable growth rate of 5% p.a., with D5 at $1.19 per share. a) You believe a stock with BOLA Logistics Ltds risk profile will require a rate of return of 10% p.a. to justify investing in it. The companys shares is currently trading at $22.00 per share. Calculate its current intrinsic value (i.e. P0) and give a suitable recommendation (i.e. Buy or Sell) on the shares to your fund manager. Show all calculations and answers in dollars and round to 2 decimal places (i.e. $XX.XX). (12 marks) b) Alternatively, your fund manager is considering keeping BOLA Logistics Ltd shares for a much longer period as Growth Asset Managers Ltd usually have a minimum holding period for its investments of at least 10 years. He also asked you to calculate the intrinsic value for the shares 10 years from now (i.e. P10). (3 marks).

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