b. The following figures are for X-Bakery. All figures except the stock price are in millions. Fiscal year-end 20X3 20X2 20X1 Total stockholder's $55.60 $54.10 $52.60 equity Net revenues $77.30 $73.60 $70.80 Net income $3.20 $1.10 Net CF from $17.90 $15.20 $12.20 operations Stock price $11.40 $14.40 $12.05 Shares outstanding 4.476 3.994 3.823 $0.40 Calculate X-Bakery's lagging P/E, P/CF, P/S, and P/B ratios. Judge whether the firm is undervalued or overvalued using the following relevant industry averages for 20X3 and the firm's historical record. (3 points) Lagging industry ratios Price-to-earnings Price-to-cash flow Price-to-sales Price-to-book value 20X3 8.6 4.6 1.4 3.6 c. The forecast for the forward earnings per share for the S&P500 was about $55. The 10 year Treasury bond yield at this time was about 4.1%. Given that the earnings yield on the S&P 500 is most recently about 0.5% above the 10-year Treasury yield, what would be the implied P/E ratio? What would be the forecast for the level of the S&P500 then? (2 points)