(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the PIE ratio approsch to valuation, calculate the value of a share of stock inder ithe following conditions: - the investor's required rate of return is 16 percent, - the expected level of eamings at the end of this year (E1) is $8, - the firm follows a policy of retaining 50 percent of its earnings, - the return on equity (ROE) is 13 percent, and - similar shares of sock sell at multiples of 5.264 times earnings per share. Now show that you get the same answer using the discounted dividend model. a. The stock price using the PIE ratio valuation method is \& (Round to the nearest cent.) b. The stock price using the dividend discount model is s (Round to the nearest cent.)