In the current financial year, a company has paid a dividend per share of $5. The company has always maintained a retention rate of 30% and expects to continue to do so in the long-run. The average return on equity is equal to 15%. The companys shareholders required return on equity is 20%. The companys justified price-to-earnings (P/E) ratio is closest to:

A. 3.16. B. 4.52. C. 7.7