Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm’s equity beta is 1.20, the risk-free rate is 2.65 percent, and the market risk premium is 7.0 percent.

Dividends per share $ 2.26
Return on equity 9.50%
Book value per share $ 18.70
Earnings Cash Flow Sales
2021 value per share $ 5.00 $ 6.30 $ 25.65
Average price multiple 13.10 9.53 2.47
Forecasted growth rate 13.59% 11.30% 7.23%
The sustainable growth rate is 5.206 percent, and the required return is 11.05 percent. Use the clean surplus relationship to calculate the share price for Beagle Beauties with the residual income model.