Todd CorpManufactures 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:
$\begin{array} { l c } & \text { Farecisted } \\\text { Year } & \text { Net Incame } \\2011 & \$ 3,576 \\2012 & \$ 65,853 \\2013 & 77,985 \\2014 & \$ 88,646 \\2015 &\$ 97,672\end{array}$
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.