. Currently, the dividend-payout ratio (D/E) for the aggregate market is 70%, the required return (k) is 14 %, and the expected growth rate for dividends (g) is 5% a. Compute the current earnings multiplier. (2 marks) b. You expect the D/E pay-out ratio to decline to 50 percent, but you assume there will be no other changes. What will be the P/E? (4 marks) c. Starting with the initial conditions, you expect the dividend pay-out ratio to be constant, the rate of inflation to increase by 3 percent, and the growth rate to increase by 2 percent. Compute the expected P/E.