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ons,gulsvlood 219226 Isto1 1n9291g91 61sb gniw 3. QEC, Inc. is a distributor of electrical supplies. Management for the company has developed the following forecasts of

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ons,gulsvlood 219226 Isto1 1n9291g91 61sb gniw 3. QEC, Inc. is a distributor of electrical supplies. Management for the company has developed the following forecasts of net income: (10 points) Forecasted Year Net Income $17,450 2018 $22,500 2019 $26,000 2020 $21,000 2021 $18,500 2022 Fred King, CFO of QEC, Inc., expects net income to grow at a rate of 9 percent per year after 2022 and the company's cost of equity capital is 15%. Management plans to pay out all income in dividends and plans to continue this policy into the future. QEC's common shareholders' equity at January 1, 2018 is $100,000. Required Using the residual income model, compute the value of QEC, Inc. as of January 1, 2018

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