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Would you expect the risk premium for an investment in an Ethiopia stock to be the same as that for a stock from the Kenya? Discuss your reasoning. 2. Under what conditions will it be ideal to use one or several of the relative valuation ratios to evaluate a stock? 3. Discuss a scenario where it would be appropriate to use one of the present value of cash flow techniques for the valuation. 4. Discuss why the two valuation approaches (present value of cash flows and the relative valuation ratios) are competitive or complementary.
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