2. In 2010, some fundamental investors believed that Microsoft was a value buy (The market overpriced Microsoft for years). Microsoft was trading for $26 in September 2010 (down from a peak of $60 in January 2000). Analysts forecasted eamings per share of $2.35 for fiscal 2011 and $2.47 for fiscal 2012. Analysts' estimated dividends of $0.97 per share in fiscal 2011. The cost of equity capital is 9.05%. a) Calculate Microsoft's normal forward P/E and the actual forward P/E. Discuss the implications of the P/E ratios. b) Value Microsoft using the AEG model, assuming zero AEG after 2012. Do you think Microsoft was over-, under-, or fairly-valued in September 2010? c) Assume you believed that Microsoft would have significant AEG after 2012. Do you think Microsoft is over-, under-, or fairly- valued as of September 2010