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

e. None of the above