Consider the following data for Company X and its industry.

Company X

Next Year's Annual Earnings = 20

WACC = 12%

g = 5% (over next 5 years)

Industry

P/E = 15

Determine the company's value according to the following methods.

a. Determine the value relative to the industry.

b. Determine the instrinsic value assuming a 5% growth rate for infinity.