tool Problem 9-03 Currently, the dividend payout ratio (D/E) for the aggregate market is 65 percent, the required return (k) is 12 percent, and the expected growth rate for dividends g) is 4 percent. Round your answers to two decimal places. a. Compute the current earnings multiplier, I . You expect the D/E payout ratio to decline to 55 percent, but you assume there will be no other changes. What will be the P/E? Grade it Now Save & Continue Continue without saving eBook Problem 9-04 As an analyst for Charlotte and Chelle Capital, you are forecasting the market P/E ratio using the dividend discount model. Because the economy has been expanding for 11 years, vou expect the dividend payout ratio will be at its low of 30 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 an equity will be 13 percent What is the expected growth rate? Round your answer to one decimal place. b. What is your expectation of the market Pre ratio? Do not round intermediate calculations. Round your answer to two decimal places, c. What will be the value for the market index if the expectation is for earnings per share or $937 Do not round intermediate calculations. Round your answer to the nearest dollar Grade it Now Save & Continue Continue without saving