You have estimated the value of Vitale Systems, an Internet software firm, to be $700 million as a going concern, seven times its book value.

However, you are concerned that Vitale might not survive the next five years and estimate the probability of failure at 40%. If the firm fails, you expect its assets to sell for 1.5 times book value. If there are 30 million shares outstanding, estimate the value per share. (The firm has no debt or options outstanding.)