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. The earnings per share of Subsidies-Forever-And-Ever (SFAE), a wind energy producer, are $5. The median P/E ratio in the wind energy sector (excluding SFAE)

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. The earnings per share of Subsidies-Forever-And-Ever (SFAE), a wind energy producer, are $5. The median P/E ratio in the wind energy sector (excluding SFAE) is 44. . If SFAE has 100,000 shares outstanding, estimate the value of its equity. (4 points) How would the P/E ratio in the wind energy sector change increase, decrease, or stay the same) if the risk-free rate decreased? Please explain your answer for full credit. (5 points)

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