3. The current share price of Blueberry plc is 200bz. It recently reported earnings per share of 15bz and has a policy of paying out 50 per cent of earnings in dividends each year. The earnings history of the firm is as follows: Last year 15bz One year ago 13bz Two years ago 12bz Three years ago 11bz Four years ago 10bz Five years ago 9bz The rate of growth in earnings and dividends shown in the past is expected to continue into the future. The risk-free rate of return is 7 per cent and the risk premium on the average share has been 6 per cent for decades. Blueberry is in a higher systematic risk class than the average share and therefore the risk premium needs to be adjusted by a beta factor of 1.5. Required (1+1=2 marks) a. Calculate the historical price-earnings ratio. b. Calculate the future growth rate of dividends and earnings