Granny Smith, Inc

Granny Smith, Inc. has a book value per share of $6.42 and current earnings per share of $1.31. The company expects earnings to increase at 7 percent per year. If the required return is 16 percent, what is the current stock price?

A) $11.57
B) $12.92
C) $11.64
D) $13.83
E) $10.58