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