Residual Income Valuation of Triton Industries

In the realm of equity valuation, consider the case of Triton Industries, a manufacturing company. Triton has a book value of equity of $25 million, and it is expected to generate a net income of $3 million for the current year. The company's cost of equity has been estimated at 10%. For the next three years, analysts project that Triton will growth in its net income at a steady rate of 5% per year. Investors are particularly interested in understanding the intrinsic value of Triton's stock using the Residual Income Valuation model.

Based on the data provided, calculate the estimated intrinsic value of Triton Industries' equity using the Residual Income Valuation approach and identify how the growth rate influences the valuation.