Morrison’s Van Hire (MVH) is a Belfast company that specialises in leasing vans. Given the following information:

earnings per share (EPS) 1 year from now= £1.60, cost of equity (k) = 10% per annum, earnings retention ratio

(b) = 0.60, growth rate in retained earnings (g) = 10% per annum, and inflation = zero.

On the basis of this information, you might estimate the share price for MVH as:

a. £10.0

b. £24.0

c. £16.0

d. £40.0