At the beginning of 2007, investors has invested $ 25000 of common equity in Grant Corp. and expect to earn a return of 11% per year. In addition, investors expect Grant Corp. to pay out 100% of income in dividends each year. Forecasts of Grant 's net income are as follows

2017: $ 3,500 2018: $ 3,200 Using this information to compute Grant Corp's expected residual income for the year 2019.

2019: $ 2,900 2020: and beyond $ 2,750 (no growth)