I have some difficulties doing this problem. I would appreciate if someone can help.

Company X is a mature company with a growth rate equal to the economy and a payout ratio that is consistent with this rate of growth. The company's growth rate is 4% and its payout ratio is 70%. If the required return on equity for Company X is 10%, what justified leading P/E ratio should be used to value the company's earnings (use dividend discount model here)?

a. 5.00X

b. 11.67X

c. 7.00X

d. 17.50X