The following are forecasted residual operating income (ROPI) for Reed Corporation for 2017: Current Forecast Horizon Terminal ($millions) 2017 2018 2019 2020 2021 Terminal

Year Residual operating income (ROPI) $2,499 $2,624 $2,755 $2,893 $3,038 $3,099

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. $71,130 B. $53,816 C. $67,988 D. $17,314 E. None of the above