Question 8 (3 points) Fitts Inc. is trading at a P/E0 of 22 times Year 0 earnings of $20 million. Its earnings are expected to grow 25% in Year 1. a. Based on the expected growth, what is the PEG ratio for Fitts? (1 points) Hayes Inc., Fitts' competitor, has a market capitalization of $350 million, and it reported net income of $13 million in Year 0. Hayes' net income is expected to increase 22% in Year 1. b. If you believe that Hayes and Fitts should trade at the same PEG, how overvalued or undervalued is Hayes' stock price at the current level? (2 points)