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As an anolyst for Chartotte and Chelle Capital, you are forecasting the market P/E ratio...

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As an anolyst for Chartotte and Chelle Capital, you are forecasting the market P/E ratio using the dividend discount model, Because the econorry has been expanding for 11 years, vou expect the oividend-paycut ratio will be at its low of 20 percent and that long-term government bond rates will rise to 7 percent. Because investors are becoming less risk averse, the equity risk premium will decline to 4 percent. As a result, investors will require a 11 percent return, and the return on equity will be 12 percent. A. What is the expected growth rate? Round your answer to one decimal place. b. What is your expectation of the market P/E ratio? Do not found intermediate calculations, flound your answer to two decimal alaces. c. What wall be the value for the market index if the expectation is for earnings per share of sa97 Do nat round intermediate calcuiations. Round your answer to the nearest dquat Continue without saving

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