Valuation of XYZ Corporation Using Residual Income Model

XYZ Corporation has forecasted to achieve a return on equity (ROE) of 10% over the next five years. The company's current book value per share is $50, and the required return on equity is 12%. Assume that XYZ is expected to maintain its ROE after the initial five-year period, and that the company will not pay dividends during this time.

Using the residual income model, what is the value of XYZ Corporation’s stock today? Use these critical points for your calculations: the annual residual income is calculated as (ROE - Required Return) * Book Value, and then discount the calculated residual income at the required return rate.