Currently, the dividend$-$payout ratio $(\frac{D}{E})$ for the aggregate market is $75$ percent, the required return $(k)$ is $7$ percent, and the expected growth rate for dividends $(g)$ is $2$ percent. Round your answers to two

decimal places.

a$.$ Compute the current earnings multiplier.

$x$

b$.$ You expect the $\frac{D}{E}$ payout ratio to decline to $60$ percent, but you assume there will be no other changes. What will be the $\frac{P}{E}?$

$x$