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

	Current	Forecast Horizon				Terminal
($millions)	Year 7	Year 8	Year 9	Year 10	Year 11	Year
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%, 2017 NOA of $29,896, and 2017 NNO of $17,314. What is the firms equity value using the ROPI valuation model?

Select one:

a. $79,584

b. $17,314

c. $56,899

d. None of these are correct

e. $72,777