Using the relevant data in Example 6.13 and the residual income model, what discount rate, k, results

Question:

Using the relevant data in Example 6.13 and the residual income model, what discount rate, k, results in a price for ROCK of $66.68?

Example 6.13

Suppose we are evaluating Gibraltar Industries, Inc. (ROCK). In our analysis, we find that ROCK currently pays no dividends, so we conclude that we cannot use a dividend discount model. Thus, we decide to calculate a value using a residual income model, for which we collected the following data:

Share Information EPSO Dividends Book value per share, Bo Dec 31, 2021 (Time 0) $2.30 $0 $25.24