PLEASE ANSWER ALL QUESTIONS

As an analyst for Chaitotte and Chelle Capital, you are forecasting the market P/E ratie using the dividend discount model. Because the economy has been trpanding for if ytars, you expect the dividend payout ratio will be at its low of 40 percent and that long-term government bond rates will rise to 7 percent. Because investors are becoming less risk averse, the equity risk premium will deciline to 3 percent. As a result, investors will require a 10 percent return, and the teturn on equity will be is percent. a. What is the exbected growth rate? Round your answer to one decimal place. b. What is vour expectation of the market Pre ratio? Do not round intermediate calculations. found your answer to two decimal places. c. What will be the value for the market index if the expectation is for earnings per thare of $957 Do not round intermediate calculations. llound your answer to the nearest dolitar. 1