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DNT PLC is a company in the manufacturing sector and they have recorded a 15% ROE for the last year. They have maintained a 35%

DNT PLC is a company in the manufacturing sector and they have recorded a 15% ROE for the last year. They have maintained a 35% payout ratio in the past and they expect to maintain the same payout in the future as well. Due to heavy competition, earnings are expected to decrease by 8% during the next two years after which earnings are expected to decrease at a rate of 02% for unforeseeable future. The annual corporate tax rate is 28%. If the actual PIE ratio of the common stock is 4, and the required rate of return for the investors for the stock is 18% per annum, what would be your advice for a prospective investor

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