Assume the company trades at a PE multiple of 15x. Assume a 10-year treasury yield of 1.6%. What should the share price be?

Stock Prices: Fourth Quarter Third Quarter Second Quarter First Quarter 2001 $27.16 $27.90 $28.33 $24.13 2002 $31.29 $30.41 $27.80 $26.85 2003 $32.59 $29.42 $32.45 $31.57 2004 $34.37 $35.78 $36.98 $31.28 2005 $38.32 $40.29 $37.52 $34.58 2006 $44.11 $39.75 $46.32 $38.81 Dividends Per Share: Fourth Quarter Third Quarter Second Quarter First Quarter Annual Dividend $0.28 $0.28 $0.28 $0.28 $1.11 $0.29 $0.29 $0.29 $0.29 $1.14 $0.30 $0.29 $0.29 $0.29 $1.17 $0.31 $0.31 $0.31 $0.31 $1.24 $0.34 $0.34 $0.34 $0.34 $1.35 $0.36 $0.36 $0.36 $0.36 $1.46 Selected Financial Data: Net income ($ in millions) Shares Outstanding EPS Payout Ratio DPS 15,303 2,049 7.47 14.8% 1.11 11,448 2,025 5.65 20.2% 1.14 11,848 2,035 5.82 19.9% 1.16 10,496 2,055 5.11 24.2% 1.24 19,893 2,945 6.75 20.0% 1.35 18,701 2,951 6.34 23.0% 1.46 Note: Results have not been adjusted for a divestiture at the end of 2001 and an acquisition at the beginning of 2005