Andrea Samica is a junior analyst with Aquistare Fianco, an independent equity research firm. Samica's supervisor asks her to update, as of 1 January 2020, a quarterly research report for CEN S.p.A., a telecommunications company headquartered in Italy. On that date, CEN's common share price is 50 and its preferred shares trade for 5.25 per share. Samica gathers information on CEN. Exhibit 1 presents earnings and dividend data, and Exhibit 2 presents balance sheet data. Net sales were 3.182 billion in 2019. Samica estimates a required return of 15% for CEN and forecasts growth in dividends of 6% into perpetuity. Exhibit 1: Earnings and Dividends for CEN, 2016-2020 Note: The data for 2016-2019 are actual and for 2020 are estimated. Exhibit 2: Summary Balance Sheet for CEN, Year Ended 31 December 2019 Notes: The market value of long-term debt is equal to its book value. Shares outstanding are 41.94 million common shares and 16.00 million preferred shares. Exhibit 3 presents forward price-to-earnings ratios (P/Es) for CEN's peer group. Samica assumes no differences in fundamentals among the peer-group companies. Exhibit 3: Peer Group Forward P/Es 1. Based on Exhibit 1, calculate the trailing P/E for CEN as of 1 January 2020, ignoring any business-cycle influence. Use the most recent four quarters' EPS. (2 pts) 2. Calculate CEN's justified forward P/E. (3 pts) 3. From question 2, determine whether CEN is over- or undervalued using the method of comparable. (2 pts) 4. Calculate the price-to-book multiple for CEN. 3 pts)