Question 4 (3 points) You are scanning a list of stocks in the discount retail sector for bargains. The PE ratios, expected growth rates in earnings, risk levels and payout ratios are listed below. a. Which of these firms is most likely to be undervalued? (Choose one firm) (1.5 points) b. Which of these firms is most likely to be overvalued? (Choose one firm) (1.5 points) Undervaluation: A firm trading at a PE much lower than it is justified. Overvaluation: A firm trading at a PE much higher than it is justified. PE 45 Firm ABC Store Brand Save Choice DollarWise EverDiscount Family Mart 15 45 45 Growth 30% 10% 10% 10% 30% 30% Beta High Low High Low Low High Payout 10% 40% 10% 10% 40% 40% 15 15