HS Ltd has a stock price of $31.79 and is expected to grow at 14.1% per year. HSs P/E

ratio is 14.3. Three other firms are also expected to grow at a similar rate: General

Electronic, Almo, and Cisko. The P/E ratio of these firms range from

11.16 to 12.91, with

an average of 12.0. If investors decide that HS should be equally expensive as these other

firms, price would the stock fall in order for it to have a P/E ratio of 12.0. What capital

gain would result from this change in price