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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 2019. Also assume that the firms equity beta is 1.30, the risk-free rate is 2.55 percent, and the market risk premium is 8.0 percent.

Dividends per share $ 2.42
Return on equity 10.50 %
Book value per share $ 19.90

Earnings Cash Flow Sales
2019 value per share $ 5.00 $ 6.40 $ 25.65
Average price multiple 13.10 9.61 2.55
Forecasted growth rate 13.67 % 11.22 % 7.25 %

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