3. Price of a share is Rs. 175, and EPS and Dividends of the last year was Rs. 6.00 and Rs. 1.75, respectively. For the next two years, forecast earnings and dividends, along with the earnings growth rates and payout ratios, are: (4+9 ) paya D. = 4.50, E, = 10.00, g1 +67%, p = 45% D2 = 4.00, E2 = 10.00, 82 = 0%, p2 = 40% Constant growth in dividends and earnings of 10% per year is forecast to begin at T-2, which means that D;= 4.4, E3 = 11, 8-10%, and p = 40%. Given a required rate of return of 12%, a. What is the normal P-E ratio? b. What is the actual P-E ratio? c. Decide whether the stock is under/over/fairly priced