Hi. could you please help me with these 2 questions thanks 6- Lauren

Hi.

could you please help me with these 2 questions

thanks

6- Lauren Entertainment Inc. has an 18 percent annual growth rate compared to the market rate of 8 percent. If the market multiple is 18 determine P/E ratios
for ratios for Lauren Entertainment Inc. assuming its beta is 1.0 and you feel it can maintain its superior growth rate for:

a. The next 10 years.

b. The next 5 years.

10-The constant growth dividend discount model can be used both for the valuation of companies and for the estimation of the long term total return of a stock.

Assume $20= price of a stock today

8%= Expected growth rate of dividends

0.60= Annual dividend one year forward

a- Using only the preceding data compute the expected long-term total return on the stock using the constant growth dividend discount model.

b- Briefly discuss three advantages of the constant growth dividend discount model in its application to investment analysis.

c- Identify three alternative methods to the dividend discount model for the valuation of companies.