b. Following the economy expansion for 9 years, you expect that the dividend payout ratio will be at its low of 30 percent and that long term government bond rates will increase to 7 percent. Since investors are becoming less risk averse, the equity risk premium will decline to 3 percent. As a result, investors will require a 12 percent return and the return on equity will be 15 percent. You are forecasting the market P/E ratio using the dividend discount model. You are required to determine: i. The expected growth rate. (2 marks) ii. The expectation of the market P/E ratio. (3 marks) 111. The value for the market index if the expectation for earnings per share is RM80