You are considering an investment in telecom supplier, JDS Uniphase Inc. The firm is expected to pay dividends of $7.7 per share next year with a constant dividend growth rate of 2.9%. The telecom supplier industry is expected to pay dividends of $5.7 per share next year with a constant dividend growth rate of 4.1%. Both JDS Uniphase and an average firm in its industry maintain a 50% dividend payout ratio

JDS Uniphase Inc and an average firm in its industry both have beta's of 1.8. The historical risk premium for the market portfolio is 7% and U.S. risk free treasuries yield 3.5%.

(a) What is the expected return an equity investor requires for investing in JDS shares. Enter your answer as a percentage to 2 decimal places.

(b) Determine the fair market value of one share of JDS Uniphase. Enter answer to two decimal places.

(c) Calculate the forward P/E ratio for JDS Uniphase. Enter answer to two decimal places.

(d) Calculate the forward P/E ratio for the Industry. Enter answer to two decimal places.

(e) Based on the P/E multiples is JDS Uniphase undervalued relative to an average firm in its industry. Answer Yes for undervalued, No for Overvalued, or else enter fairly-valued

(f) Using your answers above, calculate the PEG ratio for JDS Uniphase. Enter answer to two decimal places.

(g) Using your answers above, calculate the PEG ratio for the Industry. Enter answer to two decimal places.

(e) Based on the PEG ratios, is JDS Uniphase a more desirable investment relative to an average firm in its industry. Answer Yes or No