You are analyzing a large stable company for the year ending 12/31/2015 the company reported earnings of 558 900 and book value at the end of 2015 was $371, 700 You expect earings 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 25,000 shares outstanding What is your estimate of price using the residual income valuation model at 12/31/05 a 23.56 Ob:$20.62 OC 524.72 d. $2165