Finite horizon model with premium over book value Catapult Company has a current book value of $31 per share. As the result of an innovative product, the company earned an ROE of 13 percent. An analyst studying Catapult has estimated that the 13 percent ROE will continue for the next three years. At that point, he is uncertain what will happen to ROE, but he does observe that prior to last year, the share price was at a persistent 10 percent premium over book value, and he assumes this will be the case at the end of his three-year forecast. However, management has maintained an average market value over book value of 35 percent. The firm has a dividend payout ratio of 40 percent and the analyst estimates the cost of equity to be 9 percent. The intrinsic value per share for Catapult that the analyst will calculate is closest to: a. The residual income for the first year is: $ Number Round your answer to two decimals b. The share price premium to book value in the final year is: $ Number Round your answer to two decimals c. The value of the company is: $ Number Round your answer to two decimals