To the warld of trendsetting fashion, inatinet and marketing savvy are prerequisites Io succes. Jordan Ellia had both. During 2015, his international casual-wear company, Encore, rocketed to S410 million in sales after 10 years in business. His fashion line covered the young woman from head to toe with hats, sweaters, dresses, blouses, skirts, pants, swearshirts, socks, and shoes. In Manhattan, there was an Encore shop every five or sex hlocks, each featuring a different color. Some shops shewed the entire line in maave, and others featured it in canary yellow. Encore had made it. The company's historical growrh was so spectacular that no one could have predicted it. However, securities analysts speculated that Encure could not keep up the pace. They warned that competition is fierce in the fashion industry and that the firm might encounter litule ar no growth in the future. They estimated that stockholders also should expect no growth in future dividends. Contrary to the conservative securities analysts, Jordan Ellis believed thar the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 6% thereafter. Ellin based his estimates on an estahlished long-term expansion plan into European and Latin American markets. Venturing into these markets was expected to cause the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.8% to 10%, Currently, the risk-free rate is 6%, In preparing the long-term financial plan, Encore's chief financial officer has as signed a junioe financial analyst, Mare Scott, to evaluate the firm's current stock price. He has asked Mare to consider the conservative pnedictions of the securities analysts and the aggressive predictions of the cumpany founder, Jordan Flis. Marc has compiled the following 2015 financial data to aid his analysis 2015 Earning per share 6.25$ , price per share of common stock 40.00$ ,book value of common stock equity 60000000 ,total common share outstanding 2500000, common stock dividend per share 4.00$ What is the firm's current book value per share? b. What is the firm's current ME ratio? c. (1 What is the current required return for Encore stock? (2) What will he the new required return for Encore stock assuming that the firm expands into European and Latin American markets as planned? d. If the securities analysts are correct and there is no growth in future dividends, what will be the value per share of the Encore stock? (Noter Uise the new required return on the company's stock here.)