As a young investment banker you are hired to advise a buyer of Baja restaurant, which plans on going public soon. You are provided with the following information on the firm: Baja will generate $ 5 million in after-tax operating income on revenues of $ 100 million next year. There are some inefficiencies in the way the restaurant is operated. The owner has been very transparent with financial reporting. If management of the restaurant is improve it could generate $ 6.5 million in after-tax operating income next year on the same revenues, though expected growth is unlikely to be affected. The unlevered beta of publicly traded restaurants is 1.25, The Treasury bond rate is 5% and the market risk premium is 4%. The firm will be all equity financed. The owner is planning to issue 2 million Estimate the value per share Estimate the enterprise value of the firm with existing management and new management for a public offering