Give answers to ALL PARTS. Do not just give formulas!!!!

In 2000 , Endrun enjoyed remarkable success in the capital markets. During that year, Endrun's shares increased in value by 90%, while the S\&P 500 index fell by 9%. At the end of 2000 , Endrun's shares were trading at roughly $90 per share, and all the sell-side analysts following Endrun recommended the shares as a "buy" or a "strong buy." With 760.0 million shares outstanding, Endrun had a market capitalization of $68,400 miltion and was one of the largest firms (in terms of market capital) in the United States. At year-end 2000, Endrun's book value of common shareholders' equity was $12,500 million. At year-end 2000 . Endrun posted earnings per share of $1.35. Among sell-side analysts following Endrun, the consensus forecast for earnings per share was $1.50 per share for 2001 and $1.65 per share for 2002 , with 12% earnings growth expected from 2003 to 2005 . At the time, Endrun was paying dividends equivalent to roughly 45% of earnings and was expected to maintain that payout policy. At year-end 2000 , Endrun had a market beta of 1.8 . The risk-free rate of return was 4.5%, and the market risk premium was 6.0%. Required a. Use the CAPM to compute the required rate of return on common equity capital for Endrun. b. Use year-end 2000 data to compute the following ratios for Endrun: 1. Market-to-book 2. Price-earnings (using 2000 earnings per share) 3. forward price-earnings (using consensus forecast earnings per share for 2001) c. Reverse engineer Endrun's $90 share price to solve for the implied expected return on Endrun shares at year-end 2000 . Do the reverse engineering under the following assumptions: 1. Endrun's market price equals value. 2. The consensus analysts' earnings-per-share and earnings growth forecasts through 2005 are reliable proxies for market expectations. 3. Endrun will maintain a 45% dividend payout rate. 4. Beyond 2005, Endrun's long-run earnings growth rate will be 4.0%