Suppose, you are analysing the Company Lynott. You are aware that the company retains 20% of its earnings which are reinvested at a real rate of return of 10%. A P/E ratio for the firm = 27.2 would be consistent with a real rate of return for shares in Lynott of

a. 4.0%

b. 5.0%

c. 6.0%

d. 8.0%