Residual Value Rivaz Corporation 2005 Net Income $4,000 Dividends $2,000 Total assets 12/31/05 $40,000 Total Liabilities 12/31/05 $15,000 Number of shares outstanding 1,000 Cost of Equity 12% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, the company is only expected to earn its cost of capital. Using the residual income method what is the value per share of Rivaz stock as of 12/31/05?

A. $26.25 B. $23.43 C. $26.50 D. $23.86