Analyst target prices often have a potential target timeframe to get to that price, which is typically $6-12$ months. Assuming the $$67\mathrm{.}50$ estimated target price has a $1$ year timeframe, which explanation best characterizes the valuation model?

Group of answer choices

The forecasted price is primarily a normal rate of return with a little residual income

The forecasted price is primarily from residual income plus a little from a normal rate of return.

The forecasted price is an even split between normal returns and residual income.

The forecasted price is just a normal rate of return.