E12.17 Residual Income Valuation. Presented below are data for Alto Audio: Forecast Year 1 2 3 4 5 Terminal 500 500 500 500 500 No. of outstanding shares. Terminal year growth rate Cost of equity Net income Beginning of year common equity Free cash flow to common equity. 10% $ 82 $711 $ 46 10% $ 98 $747 $ 60 10% $114 $784 $ 75 10% $131 $823 $ 92 10% $150 $864 $110 500 5% 10% $169 $907 $117 Compute the value of a share of Alto common stock using the residual income method