ART company has come out with a new and improved product. As a result, the market projects an ROE of 25% for the company, and we know the company will maintain a plowback ratio of 0.20. The company's earnings this year is $3 per share and the current market price is $35. If firms with similar risks in the industry have a PE ratio of 20 with an estimated earnings growth rate of 12%, is ART company overvalued or undervalued based on PEG approach?

A.	The ART company is overvalued because it has a PE ratio that equals to 22.15
	B.	The ART company is undervalued because it has a PEG ratio that equals to 2.22
	C.	The ART company is overvalued because it has a PEG ratio that equals to 2.22
	D.	The ART company is undervalued because it has a PE ratio that equals to 11.11
	E.	The ART company is overvalued because it has a PEG ratio that equals to 1.42
	F.	The ART company is undervalued because it has a PEG ratio that equals to 1.42