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[ Price Earnings Valuation ] J ' s Auto currently has a P / E ratio of 1 0 . The average P / E

[Price Earnings Valuation] J's Auto currently has a P/E ratio of 10. The average P/E ratio for tirm's in J's industry is 14. You believe that J's Auto will have EPS of $2.10 next year. You also believe that their P/E ratio will move up to the industry average in the near future. According to the PIE multiple approach, what should the price of J's Auto stock be per share?
a. $20.75
b. $24.33
c. $26.03
d. $29.40
e. $31.19
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