(Relative valuation of common stock)Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: bulletthe investor's required rate of return is 12 percent, bulletthe expected level of earnings at the end of this year (Upper E 1) is $4, bulletthe firm follows a policy of retaining 30 percent of its earnings, bulletthe return on equity (ROE) is 15 percent, and bulletsimilar shares of stock sell at multiples of 9.333 times earnings per share. Now show that you get the same answer using the discounted dividend model. a.The stock price using the P/E ratio valuation method is $ nothing. (Round to the nearest cent.)