You have estimated a companys cost of equity and made residual income forecasts:

Cost of equity	10%
Annual residual income per share, starting in one year and continuing forever	2.20
Current book value of equity	4

Year	1	2	3	4
Residual income per share	2.20	2.20	2.20	2.20		2.20

Description: After one year, residual income per share is not expected to grow in perpetuity.

Value this company using the residual income valuation model.

		$20
		$22
		$24
		$26
		$28
		$30