(a) Explain, using examples, the difference between a ‘top-down’
approach and a ‘bottom-up’ approach to equity valuation.
(b) There are four principles that underlie the concept of
efficient markets. Outline, using examples, each principle.
(c) Write out the formula for the constant growth dividend
valuation model. What key assumptions are required?
(d) You are interested in buying a share that paid its last
annual dividend 9 months ago. You can assume that the next dividend
payment (3 months from today)...