Question: E15-25. (20 minutes) a. Using the average forward PE ratio for MSI and ERIC of 14.08, the estimated intrinsic value for Nokia is $3.94,

E15-25. (20 minutes) a. Using the average forward PE ratio for MSI and ERIC of 14.08, the estimated intrinsic value for Nokia is $3.94, computed as 14.08 x $0.28. b. Nokia's actual share price of $5.80 is significantly higher than the estimated intrinsic value of $3.94 from part a. This result suggests that Nokia's stock is overvalued, meaning the market likely expects its earnings to increase in the future.

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