Aaron Mechanic, CFA is responsible for valuing the shares of Duotronics Research Laboratories (DRL). The stock is currently trading at $8.75 and he gathers the following financial information about the company: Expect ROE 16% annually for each of the next 4 years Current BV of equity $435,000,000 Shares outstanding 60 million Required return on equity 12% No dividends paid All earnings are reinvested EPS is equal to the beginning book value time ROE Continuing residual income = will remain constant at the 4 year forecast level for the foresee-able future