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.