correct answer?

A firm is expected to generate earnings per share of $10 in the next year, and these earnings are expected to grow at 3.9% per annum in perpetuity. The firm maintains a constant payout ratio of 15%. If the beta of the firm's shares is 1.9, the expected return on the market is 7.2% and the risk-free rate is 3.2%, what is the firm's P/E ratio? Select one: a. 6.55 b. 1.16 C. 12.32 d. 2.17