Swamp Corporation reported $10 million in earnings and paid dividends of $3 million for fiscal 2005. Return on equity and dividend payout are expected to remain constant for the foreseeable future. Net book value at the end of fiscal 2004 was 100 million. Cost of equity is 10%. Using the residual income method, the intrinsic value of Swamp's stock at the end of 2005 should be: A. $110 million

B. $107 million

C. $101 million

D. Not determinable