General Electric Co. (GE) reported a per-share book value of $10.47 in its balance sheet on December 31,2004 . In early 2005 , analysts were forecasting consensus earnings per share of $1.71 for 2005 and $1.96 for 2006 . Use a dividend payout ratio of 50% and required return of 10% in this question. a. Calculate the value per share in early 2005 with a forecast that residual earnings will grow at a long- term GDP growth rate of 4 percent after 2006. b. GE traded at $36 per share in early 2005 . Construct a building-block diagram, displaying the components of this $36 price that attributable to book value, short-term earnings expectations, and speculation about long-term growth. c. What is the market's expectation of future residual earnings growth rate after 2006 that is implied by the $36 market price