A sporting goods manufacturer has decided to expand into a related business. Management estimates that to build and staff a facility of the desired size and to attain capacity operations would cost $$1,000$ million in present value terms. Alternatively, the company could acquire an existing firm or division with the desired capacity. One such opportunity is a division of another company. The book value of the division$$s assets is $$900$ million and its earnings before interest and tax are presently $$115$ million. Publicly traded comparable companies are selling in a narrow range around $12$ times current earnings. These companies have book value debt$-$to$-$asset ratios averaging $40$ percent with an average interest rate of $10$ percent. a$.$ Using a tax rate of $36$ percent, estimate the minimum price the owner of the division should consider for its sale.