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Residual Income Valuation - Grand Central Video's accountant forecasts the following Net Income for the next two years: Year 2021 $2,420,000 2022 $2,600,000 She estimates

Residual Income Valuation - Grand Central Video's accountant forecasts the following Net Income for the next two years:
Year
2021 $2,420,000
2022 $2,600,000
She estimates that Grand Central's Re = 12%, and its growth rate g=8%. The company does not give a dividend . If its book value is $15,000,000, what valuation does the accountant place on the company?
Please choose the answer closest to your calculation.

A.$34,287,000
B.$9,082,000
C.$21,217,000
D.$24,073,00

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