You are analyzing a large stable company. For the year ending 12/31/05 the company reported earnings of $58,900K and book value at the end of 2005 was $371,700K. You expect earnings to grow at 5% a year in perpetuity, and the dividend payout ratio of 70% to continue. The company borrows at 8%, and has a cost of equity of 12%. The company has 25,000K shares outstanding. 1. What is your estimate of price per share using the dividend discount model at 12/31/05? A) $20.62 B) $21.65 C) $23.56 D) $24.74 2.What is your estimate of price using the residual income valuation model at 12/31/05? A) $20.62 B) $21.65 C) $23.56 D) $24.72