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Office Supplies Inc. is forecasted to have a 5% decline in its earnings for the foreseeable future. The company has maintained a constant payout ratio

Office Supplies Inc. is forecasted to have a 5% decline in its earnings for the foreseeable future. The company has maintained a constant payout ratio of 60% and does not plan to change that. The earnings per share (EPS) one year from now is forecasted to be $2.00. If you require a return of 15% on this stock, how much would the stock be worth today?

$5.70

$12.00

$6.00

$4.00

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