Problem #2: Equity Investments (54 points) The following information was compiled relative to two companies and their common stock at December 31, 2020: All values in millions except per share data and's Anders Corp. Benton Inc. Current stock price $15.00 $30.00 Beta 1.1 0.8 Dividend yield 1.80% 2.50% Fiscal Year 2020: Net sales $22.000 $180.000 0.400 12.000 2.250 23.077 1.200 8.077 Interest expense Income before taxes Income tax expense Net income Earnings per share Shares $1.350 $15.000 $0.675 $1.875 2.000 8.000 Operating cash flows $1.620 $22.500 Capital expenditures (0.320) (9.000) Net borrowings (0.410) (5.630) Total assets 40.00 320.00 Total equity 12.00 144.00 The risk-free rate is 3.6% and the expected return on the market is 9.6%. 1. Calculate the following amounts based on the values based on the 2020 results. (12 points) Anders Corp. Benton Inc. CAPM required rate of return (k) Dividend per share (D) Dividend payout ratio Earnings retention rate (b) Return on equity (ROE) Sustainable growth rate (9) Supporting Calculations Required