Mekong Industries is currently selling for $90 per share. The firm`s earnings last year were $5 per share. You are trying to decide whether the firm is a good choice for your portfolio. As part of your due diligence, you gather information on the P/E ratio for Mekong`s three closest competitors: 1) Comp one`s P/E=19, 2) Comp Two`s P/E=21, and 3) Comp Three`s P/E=20. Using the average P/E for the competing firms, is MeKong a good buy? Why?

A)Yes, Because Mekong is undervalued by $10

B)Yes, because MeKong is overvalued by $10

C)No, because MeKong is overvalued by $10

D)No, because MeKong is undervalued by $10