Residual Income Calculation for ABC Corporation

ABC Corporation is a well-established company that has consistently reported earnings above its cost of equity. An analyst is evaluating the company's stock using the residual income valuation model. The analyst has determined that the company's equity charge is 10% and its current book value of equity is $50 million. In the current period, ABC Corporation reported net income of $12 million.

Using the residual income approach, which of the following represents the residual income for ABC Corporation?