Eleanor is trying to determine whether Techno Wiz (TW), a publicly traded company, is over- or undervalued. It shares currently trade at $4.50, and its latest earnings per share (EPS) are $1.50. The company has a long-run policy of paying out 1/5 of all earnings as dividends. Moreover, Wall Street's analysts predict that, in the long- term, TW's annual growth rate in earnings will be five percent. Investor's required rate of return for holding TW stock is 15 percent. If Eleanor compares TW's market- based PE ratio (PEM) to its PE ratio based on fundamentals (PEF), which of the below statements is true? O Market PE ratio > Fundamental PE ratio, which suggests TW's stock is overvalued O Fundamental PE ratio > Market PE ratio, which suggests TW's stock is undervalued O Market PE ratio > Fundamental PE ratio, which suggests TW's stock is undervalued O Fundamental PE ratio > Market PE ratio, which suggests TW's stock is overvalued O There isn't enough information to answer this question Eleanor is trying to determine whether Techno Wiz (TW), a publicly traded company, is over- or undervalued. It shares currently trade at $4.50, and its latest earnings per share (EPS) are $1.50. The company has a long-run policy of paying out 1/5 of all earnings as dividends. Moreover, Wall Street's analysts predict that, in the long- term, TW's annual growth rate in earnings will be five percent. Investor's required rate of return for holding TW stock is 15 percent. If Eleanor compares TW's market- based PE ratio (PEM) to its PE ratio based on fundamentals (PEF), which of the below statements is true? O Market PE ratio > Fundamental PE ratio, which suggests TW's stock is overvalued O Fundamental PE ratio > Market PE ratio, which suggests TW's stock is undervalued O Market PE ratio > Fundamental PE ratio, which suggests TW's stock is undervalued O Fundamental PE ratio > Market PE ratio, which suggests TW's stock is overvalued O There isn't enough information to answer this question