3) A firm has estimated the residual earnings per share of stock for the next three years to be $0.50, $0.55, and $0.59, respectively. The residual earnings are expected to grow at 5 percent annually forever. The current book value of equity $15 per share and the required return on equity is 12%. What should be the current per share value of equity (i.e, the stock price per share in year 0)?

A) $7.60

B) $20.53

C) $22.61

D) $25.15