Jumbo Transport,an Air-Cargo Company,expects to Have Earnings Per Share of $2.50

Jumbo Transport,an air-cargo company,expects to have earnings per share of $2.50 in the coming year.It decides to retain 20% of these earnings in order to lease new aircraft.The return on this investment will be 25%.If its equity cost of capital is 12%,what is the expected share price of Jumbo Tranport?

A) $16.67
B) $19.23
C) $24.75
D) $28.57
E) $31.86