Question: Could you please show the process how to find this question with formulas. Vansel Inc. retains most of its earnings. The company currently has earnings

Could you please show the process how to find this question with formulas.

Vansel Inc. retains most of its earnings. The company currently has earnings per share of $11. Vansel expects itsearnings to grow at a constant rate of 2 percent per year. Furthermore, the average PE ratio of all other firms in Vansel'sindustry is 12. Vansel is expected to pay dividends per share of $3.50 during each of the next three years. If investorsrequire a 10 percent rate of return on Vansel stock, a fair price for Vansel stock today is $____.

a. 113.95

b. 111.32

c. 105.25

d. none of the above

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