2. The Red and Black Company's CFO Stendhal wants to value a company for a potential acquisition offer, however this company is not publicly traded. Therefore, he checks the publicly traded competitor companies' P/E and P/B ratios. The P/E and P/B ratios of the competitors are given below: P/E P/B Company XYZ 8.2 1.3 XZY 9.3 1.7 YXZ 10.4 1.5 YZX 11.5 1.3 ZXY 12.6 1.8 ZYX 17.7 0.7 The company's common equity is $7000000 and it has 100000 shares outstanding. Last year's net income is $700000 a. What is the company's PPS according to P/E ratio of the competitiors? (7.5 pts) b. What is the company's PPS according to P/B ratio of the competitiors? (7.5 pts)