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Growth Payout Company P/E Rate (%) Risk (Beta) Rate (%) Mega Lo Mart ? 5 0.51 33 Try - N - Save 16.9 0.49 32

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Growth Payout Company P/E Rate (%) Risk (Beta) Rate (%) Mega Lo Mart ? 5 0.51 33 Try - N - Save 16.9 0.49 32 Buy n Large 15.3 0.46 29 Superstore 17.0 0.41 35 You are a junior analyst valuing Mega Lo Mart Inc. (the discount department store retailer) using the P/E approach. Your manager informs you that Mega Lo Mart's EPS is currently $5.45. She also gives you data on the firm's main competitors, provided in the table above. All three of these companies are good comparables for Mega Lo Mart. What is Mega Lo Mart's fair value using the P/E approach? O A. $100.00 O B. $83.39 O C. $89.38 O D. $92.65

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