3. Peppa plc is a publicly traded company with 100 million shares trading at 10 per share, and no cash. The company is in stable growth, expecting to grow 3% a year in perpetuity, and the cost of equity for the company is 10%. a. If the Price to Book ratio for the company is 1.25, estimate the market's expectation of the return on equity for the company. (3 marks) b. If you believe that the company cannot earn more than its cost of capital in the long term, how much (in percentage terms) is the equity in this company under- or over-valued? (2 marks)