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1. You are attempting to determine if your firm's stock price is trading below that of its competitors. Based on information from Bloomberg, you estimate

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1. You are attempting to determine if your firm's stock price is trading below that of its competitors. Based on information from Bloomberg, you estimate the shares are trading between 10 - and 15 -times earnings. Your company has been paying out about 30% of its earnings in dividends, which have grown at 9% per annum. Given that an analyst at Blue Rock Capital suggested that your cost of equity is about 12%, what P/E should your stock be trading? What might you do in this situation to increase the firm's P/E ratio

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