Calculating Residual Income for XYZ Corp

XYZ Corp is forecasting its future earnings per share (EPS) and intends to use the residual income valuation method to determine its intrinsic value. The company projects an EPS of $5.00 for the next year, and it estimates its cost of equity to be 10%. The book value of equity at the beginning of the year is $40. Using this information, what is the residual income for XYZ Corp for the upcoming year?