2005Net Income:$3000Dividends: $1000Total Assets 12/31/05: $35000Total Liabilit

2005Net Income:$3000Dividends: $1000Total Assets 12/31/05: $35000Total Liabilities 12/31/05: $21225Number of shares outstanding: 1000Cost of Equity: 12%Net income is expected to increase by 10% for the next year and dividend payout ratio is expected to remain constant. After 2006 retained earnings are expected to decrease to zero. Using the residual income method what is the value per share of Rivaz stock as of 12/31/05? (Points : 2)$15.25$15.16$14.38$13.77Net income is expected to increase by 10% for the next year and dividend payout ratio is expected to remain constant. After 2006 retained earnings are expected to decrease to zero. Using the residual income method what is the value per share of Rivaz stock as of 12/31/05? (Points : 2)$15.25$15.16$14.38$13.77