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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 yearend Also assume that the firms equity beta is the riskfree rate is percent, and the market risk premium is percent.
Dividends per share $
Return on equity
Book value per share $
Earnings Cash Flow Sales
value per share $ $ $
Average price multiple
Forecasted growth rate
The sustainable growth rate is percent, and the required return is percent. Use the clean surplus relationship to calculate the share price for Beagle Beauties with the residual income model. DO NOT USE EXCEL AND PLEASE SHOW FORMULA
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