The common stock for Southern Sofa Company (SSC) is currently selling for $27.50. Earnings for year just completed were \$1.10 per share, giving the stock a current P / E (or earnings multiple) of 25. Stock analysts estimate that earnings per share will be \$1.3 for next year (t = 1) , and $2.10 for the year after that (i.e., two years from now; t=2) . You believe that SSC deserves a future P / E (earnings multiple ) that is 1.2 times the industry average P / E for similar furniture companies (i.e., a P / E that is 20 % higher than the industry average ). Analysts estimate that the industry average P / E (earnings multiple ) will be 28 for the the foreseeable future . If investors require a 13% rate of return estimate the value for SSC stock two years from now and then calculate what it should be worth now. (Use the PE Valuation approach for this problem .)