Residual Income Valuation of XYZ Corp

A company, XYZ Corp, has reported a net income of $1 million for the current year. The company's total equity at the beginning of the year was $10 million, and its required rate of return on equity is 10%. The company has also announced that it will generate a constant return of 15% on equity going forward. Based on the Residual Income Valuation model, what is the estimated value of equity per share if the company has 1 million shares outstanding?