$($Related to Checkpoint $10\mathrm{.}2)($Using relative valuation for common stock$)$ Using the P$/$E ratio approach to valuation, calculate the value of a share of stock under the following conditions: $-$ The investor's required rate of return is $14$ percent. $-$ The expected level of earnings at the end of this year $\backslash (\backslash$left$($E$\_\{1\}\backslash$right$)\backslash )$ is $\backslash (\backslash$$ $4\backslash ).-$ The firm follows a policy of retaining $20$ percent of its earnings. $-$ The return on equity $($ROE$)$ is $13$ percent. $-$ Similar shares of stock sell at multiples of $7\mathrm{.}018$ times earnings per share. Now show that you get the same answer using the discounted dividend model. a$.$ The stock price using the P$/$E ratio valuation method is $($round your answer to the nearest cent$)\backslash (\backslash$$ $16\mathrm{.}00\backslash ).$