Todd Corp Manufactures Train Components Thomas' Common Shareholders' Equity Was $422,174 on January 1, 2011

Todd Corp. manufactures train components. On January 1, 2011, management provided the following forecast of income for the next five years:
$\begin{array}{c}\begin{array}{l}\\\text { Year } \\2011 \\2012 \\2013 \\2014 \\2015 \end{array}\begin{array}{l}\text { Forecasted}\\\text { Net Income}\\\$ 54,252 \\\$ 64,017 \\\$ 76,181 \\\$ 86,846 \\\$ 97,267\end{array}\end{array}$

Thomas' common shareholders' equity was $422,174 on January 1, 2011. The firm does not expect to pay a dividend during the 2011-2015 period. Thomas' cost of equity capital is 11 percent.
Required:
Compute the value of Todd Company on January 1, 2011, using the residual income valuation model and the half year convention. T. Harp, the CEO of Todd, expects net income to grow at a rate of 6 percent annually after 2015.