Residual Income Valuation Calculation for ABC Technologies

ABC Technologies is evaluating its residual income valuation as part of an equity analysis for the upcoming year. The company has a book value of equity of $2,000,000. For the current year, it is expected to generate a net income of $300,000. The company’s required return on equity (ROE) is estimated to be 10%.

Using residual income valuation, calculate the intrinsic value per share if there are 500,000 shares outstanding.