Question 36 (2.5 points) Saved Use the following information for to answer questions 36 to 40. Tera Electronics (NYSE: TE) engages in the manufacture and sale of electronic devices. Selected information to compute some valuation estimates for the firm is given below. Assume the values provided are from the end of Year O. Also assume that the firm's equity beta is 1.50, the risk-free rate is 2.00 percent, and the market risk premium is 6.00 percent. Dividends per share Return on equity Book value per share $2.00 10.00% $20.00 Year O value per share Average price multiple Forecasted growth rate Earnings $5.00 15.00 12.00% Cash Flow 58.00 10.00 11.00 Sales $30.00 2.50 8.00 Question 38 (2.5 points) Estimate the intrinsic value of TE at the end of Year O according to the constant growth dividend discount model. Use the correct sustainable growth rate from question 36. A) $31.09 B) $35.05 C) $35.55 D) $40.55 O E) $42.40