An analyst gathered the following data about a company:
·The historical earnings retention rate of 40% is projected to
·continue into the future.
·The sustainable ROE is 12%.
·The stock's beta is 2.
·The nominal risk-free rate is 6%.
·The expected market return is 11%.
If the analyst believes next year's earnings will be $4 per share, what value should be placed on this stock?

A.$22.24.

B.$33.32.

C.$45.45.