Justified PB

An analyst gathered the following information regarding Jemco Pharmaceuticals' stock:

Current stock price $=$$$11\mathrm{.}00$

Book value per share $=$$$4\mathrm{.}25$

Return on equity $=12\%$

Sustainable growth rate $=2\%.$

Required return on equity $=8\%$

a$.$ The stock's actual $\frac{P}{B}$ multiple is:

Round your answer to two decimals.

b$.$ The justified P$/$B multiple based on forecasted fundamentals is:

Round your answer to two decimals.

c$.$ How the stock is valued on a relative basis $($choose the correct one$)$