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An analyst estimates the EPS of Jim Inc. in the next six years to be $0, $0, $4.2, $4.6, $5.2, and $6.0. The company has

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An analyst estimates the EPS of Jim Inc. in the next six years to be $0, $0, $4.2, $4.6, $5.2, and $6.0. The company has a policy of paying out 60% of its earnings each year in dividends. The average leading industry P/E in year 5 is expected to be 20. The cost of equity is 15%. What is the terminal value at the end of year 5? A. $92 B. $120 C. $112 D.$104

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