Tayco Corporation Has Just Paid Dividends of $3 Per Share

Multiple Choice

Tayco Corporation has just paid dividends of $3 per share. The earnings per share for the company was $4. If you believe that the appropriate discount rate is 15% and the long term growth rate in dividends is 6%, and earnings is 6%, then what is the firm's P/E ratio?

A) 8.33
B) 33.33
C) 44.44
D) 11.11
E) None of the above