Question 2: Bionic Corp., is currently selling for $5.8, with TTM EPS, and dividends per share of $1.15 and $0.35, respectively. The company's P/E is 5.04, P/B is 0.46, and P/S is 0.95. The ROE is 9.0%, and the profit margin on sales is 19.0%. The Treasury bond rate is 2.20%, the equity risk premium is 5.30%, and Bionic's beta is 1.2. a) What is the cost of equity capital? b) Assume that the dividend and earnings growth rates are 4%. What trailing P/E, P/B, and P/S multiples would be justified in light of the required rate of return in Part A and current values of the dividend payout ratio, ROE, and profit margin? c) Given that the assumptions and constant growth model are appropriate, state and justify whether Bionic Corp., based on fundamentals, appears to be fairly valued, overvalued, or undervalued