(Next year)

ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of 0.20. Its next earnings are expected to be $3 per share. Investors expect a 12% rate of return on the stock. At what price would you expect ART to sell? $45.67 $34.29 $25 $42.86