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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
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 1.50 , the risk-free rate is 2.70 percent, and the market risk premium is 7 percent. a. What are the sustainable growth rate and required return for Beagle Beauties? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. b. Using these values, estimate the current share price of Beagle Beauties stock according to the constant dividend growth model. Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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