6. Consider the two regression equations: R2 = 19.6% PYT 0.649 -0.296 (BETA) (32.16) (15.40) +.300 (DCAP) (7.33) -.800 (EGR) (8.90) + .023 (DCAP) R2-25.8% -O38 (EGR) (13.25) YLD 0.0324 -01 54 (BETA) (38.81) (19.41) (13 45) where: PYT-Dividend Payout Ratio = Dividends/Net Income YLD Dividend Yield- Dividends/Current Price BETA Beta (Regression or Bottom up) for company EGR = Expected growth rate in earnings over next 5 years (analyst estimates) DCAP Total Debt / (Total Debt+ Market Value of equity) Suppose: Beta for Disney = 1.10 Disney's expected growth in earnings per share-15% (analyst estimate) Disney's market debt to capital ratio = 14% (a) Find the predicted payout ratio for Disney (b) Find the predicted dividend yield for Disney