The financial information of Z, Inc. is as follows:

EBIT/share: $5

EPS: $3

Growth rate: 15%

Stock Price per share: $48

The industry averages of price-EBIT ratio, PE ratio and PEG ratio are 10, 15, and 1.2 respectively.

(a) What is the implied stock price of Z, Inc. using the PE ratio? (b( What is the implied stock price of Z, Inc. using the PEG ratio? (c)What is the implied stock price of Z, Inc. using the price-EBIT ratio?

(d) Which ratio indicates that Z is overvalued? Select the following

(a)PE ratio

(b)PEG ratio

(c)Price-EBIT ratio

(d) PEG ratio and Price-EBIT ratio