The research analyst at Needham & Company believes that Funko, Inc (FNKO) has a return on equity (ROE) of 11.4% with a beta () of 2.2. Funko, Inc plans to maintain indefinitely its plowback ratio of 0.60. The firm's earnings this year (Eo) were equal to $1.90 per share. The research analyst estimates that the expected return this year for the market E(rm) will equal 13% and that the risk free rate will be 3.2% (rf = 0.032). (a) Find the price at which a share of FNKO should sell. [5 Points] (b) Calculate the P/E ratio for Funko, Inc. [3 Points] (c) Suppose the research analyst publishes a report stating that they believe that Funko, Inc. will soon lower its plowback ratio to 0.50. If you're a current stockholder in FNKO should you purchase more stock or sell your position? Assume that the stock is currently trading at the value you found in Part (a). Explain your reasoning. (Hint: Earnings next year will change.] [8 Points]