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A company has a book value per share of $26.70 at the end of 2019. Its EPS in 2020 is $6.42. Its beta is 1.7,

A company has a book value per share of $26.70 at the end of 2019. Its EPS in 2020 is $6.42. Its beta is 1.7, the risk-free rate is 2.17% and the equity risk premium is 5.25%. What is the company's residual income in 2020? Select one:

a. $4.96

b. $3.46

c. $3.96

d. $4.46

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