Question 28

valuation estimates for the firm. Assume the values provided are from year-end 2015. Also assume that the firm's equity beta is 1.40, the risk- free rate is 2.75 percent, and the market risk premium is 7 percent. 60 Dividends per share Return on equity Book value per share $2.04 9.50% $17.05 Earnings Cash Flow $6.60 9.42 11.41% Sales 2015 value per share Average price multiple Forecasted growth rate $5.00 13.10 13.48% $25.65 2.36 7.34% 27. Constant Perpetual Growth Model (L.O1, CFA6) What are the sustainable growth rate and required return for Beagle Beauties? Using these values, estimate the current share price of Beagle Beauties stock according to the constant dividend growth model. Price Ratios (LO4, CFA8) for Beagle Beauties. 28. Using the P/E, P/CF, and P/S ratios, estimate the 2016 share price