The Blue Bus Company, has a forward P/E multiple which is 10% higher than the industry average of 8.0x. It has an equity beta of 1.2, the market risk premium is 5.5% and Treasury Notes are currently yielding 5.1%. If the company pays dividends which are expected to grow at 3.5%, what is the companys long term payout ratio.

	A.	Greater than 40% and up to (and including) 50%
	B.	Greater than 50% and up to (and including) 60%
	C.	Greater than 60% and up to (and including) 70%
	D.	Greater than 70% and up to (and including) 80%
	E.	None of the above