The following are forecasted residual operating income (ROPI) for Reed Corporation for Year 7:

	Current	Forecast Horizon				Terminal Year
($millions)	Year 7	Year 8	Year 9	Year 10	Year 11
Residual operating income (ROPI)	$1,999	$2,099	$2,204	$2,314	$2,430	$2,479

Assume a discount rate of 6%, an expected terminal growth rate of 2%, Year 7 NOA of $29,896, and Year 7 NNO of $17,314.

What is the firms equity value using the ROPI valuation model?

		$79,584
		$56,899
		$17,314
		$72,777
		None of these are correct.