TC is considering acquiring JH, Inc. TC's management team decided to use comparable transaction analysis to estimate the takeover price for JH. TC's management team assembled a sample containing companies involved in acquisitions within the same industry in which JH operates. Details on the acquisition prices and relevant pricing variables for the three comparable companies are presented in Exhibit 2. Exhibit 2: Valuation VariablesCompany XCompany Y Company Z Acquisition stock price (S)57.50 Earnings per share (S) 2.85 Cash flow per share () 5.25 Book value per share (S) 8.90 Sales per share (S) 25.00 3.15 7.50 11.50 22.50 32.00 1.90 4.40 6.20 11.25 18.15 In addition, some relative valuation metrics for JH are shown in Exhibit 3. Exhibit 3: Earnings per share (S) 2.50 Cash flow per share ($) 4.80 Book value per share ($)10.50 Sales per share (S) 22.50 Assume the takeover premium is 0. Based on Exhibit 2 and 3 and the comparable transaction analysis, the estimated takeover price for JH is closest to: A) $37.50 B) $43.40 C) $53.40