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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

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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 selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2015. Also assume that the firm's equity beta is 140, the risk-free rate is 285 percent, and the market risk premium is 77 percent. Dividends per share Return on equity Book value per share $ 4.08 16.80% $17.90 Earnings $ 6.70 14.80 13.82% Cash Flow $ 7.45 9.93 12.26% Sales $26.50 3.84 8.36% 2015 value per share Average price multiple Forecasted growth rate a. What are the sustainable growth rate and required return for Beagle Beauties? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) % % Sustainable growth rate Required return

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