An analyst gathered the following information for a company:

Risk-free rate = 6.75%.

Expected market return = 15.00%.

Beta = 1.30.

Dividend payout ratio = 55%.

Profit margin = 10.0%.

Total asset turnover = 0.75.

Assets to equity ratio = 2.00.

Assuming that the most recent years earnings are $2.27, what is the estimated value of the stock using the earnings multiplier method of valuation?

A. $12.43.

B. $29.14.

C. $41.18.