1. Stock Valuation: Assets for a firm equal $2M and liabilities equal $1.5M for 2018. Net income and dividends equaled $225K and $100K respectively. The firm has 100,000 outstanding shares as of the end of 2018. Net income is expected to grow at a rate of 5% per year for the next 2 years (2019 and 2020). The dividend payout ratio is expected to remain at 2018 levels for the foreseeable future. After 2018 abnormal earnings are expected to be $0. Cost of debt is 8.25% and the cost of equity is 12.75%. Determine the value of the firms stock per share at the end of 2018 using the accounting based equity valuation formula.