$($Related to Checkpoint $10\mathrm{.}2)($Jusing relative valuation for eemmen steck$)$ Uling the PE ratio approach to valuation, calculate the value of a share of atock under the following cordicorr

The investor's required rate of refum is $12$ percent.

The expected level of earnings at the end of this year $(E_1)$ is $$8.$

The firm follows a polloy of retaining $30$ percent of to earnings.

The return on equity $($ROE$)$ is $13$ percent.

Similar shares of stock self at multiples of $8\mathrm{.}84\mathrm{.}3$ times eamings per share.

Now show that you get the same answer using the discounted dividend model.

a$.$ The stock price uning Phe PIE ratio valuation methad is : $($Round to the nearest cent$)$

b$.$ The stock price uning the dividend discount model is $!($Found to the nearest cert.$)$