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 $2022.$ Also assume that the firm's equity beta is $1\mathrm{.}50,$ the risk$-$free rate is

$2\mathrm{.}70$ percent, and the market risk premium is $7$ percent.

Dividends per share $$2\mathrm{.}28$

Earnings per share $$5\mathrm{.}00$

Return on equity $,9\mathrm{.}50\%$

a$.$ What are the sustainable growth rate and required return for Beagle Beauties?

Sustainable growth rate:

Required return of equity:

$\%$

b$.$ Using these values, estimate the current share price of Beagle Beauties stock according to

the constant dividend growth model.

Share price: $