Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm’s equity beta is 1.20, the risk-free rate is 2.65 percent, and the market risk premium is 7.0 percent.

Dividends per share $ 2.26
Return on equity 9.50%
Book value per share $ 18.70
Earnings Cash Flow Sales
2021 value per share $ 5.00 $ 6.30 $ 25.65
Average price multiple 13.10 9.53 2.47
Forecasted growth rate 13.59% 11.30% 7.23%
The sustainable growth rate is 5.206 percent, and the required return is 11.05 percent. Use the clean surplus relationship to calculate the share price for Beagle Beauties with the residual income model.

Sagot :

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.