Siemens (SIEGY) is currently selling for 38.50, with TTM EPS, and dividends per share of 1.36 and 0.91, respectively. The companys P/E is 28.3, P/B is 7.1, and P/S is 2.9. The ROE is 27.0 percent, and the profit margin on sales is 10.24 percent. The Treasury bond rate is 4.9 percent, the equity risk premium is 5.5 percent, and SIEGYs beta is 1.2. Assume that the dividend and earnings growth rates are 9 percent. What trailing P/E, P/B, and P/S multiples would be justified in light of the required rate of return using CAPM and current values of the dividend payout ratio, ROE, and profit margin?

P/E=28.2, P/B=5.2, P/S=2.0

P/E=29.2, P/B=7.2, P/S=2.6

P/E=29.2, P/B=7.2, P/S=3.0

P/E=29.2, P/B=6.2, P/S=2.0