You have gathered the following fundamental industry and market date to analyze a particular industry.

Forecast industry earnings retention rate	30%
Forecast industry return on equity	15%
Industry beta	1.25
Risk-free interest rate	4%
Market risk premium	6%

Based on above date, the price-to-earnings ratio (i.e. Current stock price/ forecast earnings) for this industry is closest to ?

1. 20
2. 13
3. 10
4. 17