The average Price-to-Book (P/B) multiple of firms in the alcoholic drink industry is 4.0 times. Boston Beer (NYSE ticker: SAM) has a book value of equity of $1,400 million and 200 million shares outstanding. You believe that SAM should be valued at the P/B ratio of 25% higher than the industry average. Based on your belief, the intrinsic value of its stock should be (rounded to two decimal places)...

a.

$35.00

b.

None of the options provided.

c.

$7.00

d.

$28.00

e.

$5.00