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Daniel is trying to determine the reasonable stock price of IBM. He has collected the following information for his analysis: Recent earnings per share: $10

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Daniel is trying to determine the reasonable stock price of IBM. He has collected the following information for his analysis: Recent earnings per share: $10 Growth rate of earnings: 2% Retention ratio: 80% Required rate of return (cost of equity): 696 According to the forward P/E ratio, the reasonable stock price of IBM should be O a. $10.50 b. $15. O C. $25.50. O d. $51. e. None of the above

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