$($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:

bullet$$

The$$ investor's required rate of return is

$1212$

percent.

bullet$$

The expected level of earnings at the end of this year

$($Upper E $1$E$1)$

is

$$$$44.$

bullet$$

The firm follows a policy of retaining

$3030$

percent of its earnings.

bullet$$

The return on equity

$($ROE$)$

is

$1515$

percent.

bullet$$

Similar shares of stock sell at multiples of

$9\mathrm{.}3339\mathrm{.}333$

times earnings per share.

The stock price using the dividend discount model is

$$$