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): 6%

According to the forward P/E ratio, the reasonable stock price of IBM should be

	a.	$10.50.
	b.	$15.
	c.	$25.50.
	d.	$51.
	e.	None of the above.