Calculate Residual Income

Residual Income Valuation is a method used to determine the intrinsic value of a company's equity by considering the excess income generated beyond the required return on equity. In this context, suppose a company has a current book value of equity of $50 million. It is expected to generate a net income of $8 million next year and has a required return on equity of 10%. Using the residual income model, what will be the residual income for the upcoming year?