(Rolated to Checkpolnt 10.2) (Relative valuation of common stock) Using the PiE ratio approach to valuation, cakulate the value of a share of stock under the following consitions: - the investor's required rate of return is 12 percent, - the expected level of earnings at the end of this year (E1) is $4, - the firm follows a policy of retaining 30 percent of its earnings. - the retum on equity (ROE) is 16 percent, and - similar shares of stock sell at multiples of 9.723 times earnings per shate. Now show that you got the same answer using the discounted dividend model