Suppose you have collected the following information about Beta Corp:

Plowback ratio = 0.4, Current year (2015) EPS = $4 ,Required return = 12% ,Current stock price = $50, Dividend growth rate in the foreseeable future = 5%

a)estimate the P/E of the companys stock using:

i) Justified/theoretical trailing P/E

ii) Trailing P/E based on market price

iii) Whether the company is currently over-valued, under-valued or fairly valued