Donald Biden is portfolio manager who likes to invest his client's money in highly speculative instruments. Donald is contemplating the purchase of 40,000 shares of Shakee Corporation's common stock, which is currently selling on the TSX at $31.75 per share. Donald will only invest if the Shakee Corp. stock is undervalued based on both the DDD and industry Average P/E. Determine if Donald should invest based on his criteria.

Relevent information: D0=3.20, KE=10% , G=2%, EPS=$3.50, Industry Average P/E= 12