3. PHB Company currently sells for 32.50 per share. In an attempt to deter- mine whether PHB is fairly priced, an analyst has assembled the following information: - The before-tax required rates of return on PHB debt, preferred stock, and common stock are, respectively, 7.0%,6.8%, and 11.0%. - The company's target capital structure is 30% debt, 15% preferred stock, and 55% common stock. - The market value of the company's debt is 145 million, and its preferred stock is valued at 65 million. - PHB's FCFF for the year just ended is 28 million. FCFF is expected to grow at a constant rate of 4% for the foreseeable future. - The tax rate is 35%. - PHB has 8 million outstanding common shares. What is PHB's estimated value per share? Is PHB's stock underpriced