17.5 Milano Pizza Club owns a chain of three identical restaurants popular for their Milan style pizza. Comparable stores have an equity value of $900,000 and debt-to-equity ratio of 30 percent. The prevailing market interest rate is 9.5 percent. An equivalent all-equityfinanced store would have a discount rate of 15 percent. For each Milano store, the estimated annual sales are $1,000,000, costs of goods sold $400,000, and general and administrative costs $300,000. (Every cash flow stream is assumed to be a perpetuity.) The marginal tax rate is 40 percent. What is the value of the Milano Pizza Club?