15. Use the following inputs and the finite horizon form of the residual income model to compute the value of Southern Trust Bank (STB) shares as of 31 December 2007: . ROE will continue at 15 percent for the next five years (and 10 percent thereafter) with all earnings reinvested (no dividends paid). . Cost of equity equals 10 percent. . Bo = $10 per share (at year-end 2007). . Premium over book value at the end of five years will be 20 percent