The following were the P/E ratios of firms in the aerospace/defence industry at the end of December 2015 a) Calculate the average (mean) and the median P/E ratio. What, if anything, would the two numbers tell you? b) An analyst concludes that Thiokol is undervalued because its P/E ratio is lower than the industry average. Under what conditions is this statement true? Would you agree with it here? Why? c) Using a regression, control for differences across firms on risk, growth, and payout. A regression of P/E ratios on the other three variables results in: P/ E ratio =2.33+0.3574( Expected Growth )+11.96815 (Beta) +0.02902 (Payout) Calculate the predicted P/E ratio for Thiokol using the above regression equation [using the numbers in the data table directly; do not adjust the numbers for percentage] and discuss whether it is overpriced or underpriced. Briefly discuss one limitation of this approach