Presented below are data for Snap Imaging:

Compute the value of Snap Imaging stock using the residual income method.

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Forecast Year 2 3 Terminal No. of outstanding shares 800 800 800 800 800 800 Terminal year growth rate 3% Cost of common equity. 8% 8% 8% 8% 8% 8% Net income..... 87.86 Beginning of year common equity. 169.81 Free cash flow to common equity 15.00 118.28 136.47 162.07 242.68 300.95 382.42 454.49 60.00 180.27 185.68 539.79 55.00 90.00 95.00 169.48