Exercise: Rivaz Corporation Net Income Dividends Total Assets - 12/31/05 Total Liabilities - 12/31/05 Number of shares outstanding Cost of Equity 2005 $ 3,000 $ 1.000 $35.000 $21.225 1.000 12 Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, retained earnings are expected to decrease to zero. Using the residual income method what is the value per share of Rivaz stock as of 12/31/05? Using the dividend discount model, assuming dividends grow at 10% per year for the next two years and at 5% thereafter, what is the value per share of Rivaz Corporation at 12/31/05