Company Badger Meter (BMI) Gorman-Rupp (GRC) Franklin Electric (FELE) Mueller Water Products Circor International Stock Price 45.78 31.28 45.42 12.35 46.02 Earnings per share (ttm 1.15 0.91 1.85 -0.77 0.92 Book Value of Equity per share (ttm) 9.42 12.22 14.99 3.08 27.39 38. Use the information in the table above to compute the current the Price Earnings multiple for Circor International. Compute the Cap Rate for Circor based upon the computed P/E multiple. The correct answer is: a. 19.99% b. 2.42% c. 14.07% d. 2.00% e. 45.42% 39. Assume that a company has a P/E multiple equal to 18. If the long term geometric growth rate in earnings is assumed to be 2.8%, what is the estimated cost of equity for the firm? a. b. c. d. e. 2.76% 4.34% 8.36% 9.94% 16.80%