Write a 1-2 page (approximately 500 words) paper on the following for Target TGT, price of share is 96.01:

- Part A-Fundamental Valuation:
**Estimate**a growth rate for your firm’s Dividends per Share.**Assume**a 12.5% discount rate.**Calculate**an estimated value of a share of the stock using the constant-growth model (Eq. 8-6 in the textbook), also known as the Gordon growth model.**Compare and contrast**your valuation results with the current share price in the market.**Respond to this question:**What changes in the variables would be necessary in your valuation to best approximate the market valuation?

- Part B – Relative Valuation:
**Estimate**a growth rate for your firm’s Earnings per Share (EPS).**Determine**an applicable Price-Earnings (P/E) ratio for your firm in 5 years.**Calculate**an estimated value of a share of the stock in 5 years using the P/E ratio model (Eq. 8-10 in the textbook).**Respond to this question:**Would you characterize your stock as undervalued or overvalued? Explain.**Respond to this question:**Based on your valuations in parts A and B, would you invest in this stock? Explain.*Get**Finance homework help**today*