(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the PE ratio approach to valuation, calculate the value of a share of stock under the following conditions: the investor's required rate of return is 12 percent . the expected level of earnings at the end of this year (E) is $8, the firm follows a policy of retaining 40 percent of its earnings, the return on outy (ROis 16 percent and Smile shares of stock sell at multiples of 10 714 times wings por share Now show that you get the same a wer using the discounted dividend model a. The stock price using the PlE ratio valuation method is Round to the nearest cont)