Management errors which increase risk affect the stock price by a)Price falls increasing k? b)Price rises increasing k? c)Price falls decreasing g? d)Price rises increasing g?

The P/E multiplier is 16. The earnings per share for the coming year E1 are $2.00 per share How much do you think the stock price should be?

a)$16

b)$26

c)$32

d)$48