Assignment 3 Question 13 (of 16) 13. 6.25 points value: P18-3. Flow to Equity Milano Pizza Club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt-to-equity ratio of 45 percent and makes interest payments of $65,000 at the end of each year. The cost of the firm's levered equity is 18 percent. Each store estimates that annual sales will be $1.51 million, annual cost of goods sold will be $649,500, and annual general and administrative costs will be S433,000 These cash flows are expected to remain the same forever. The corporate tax rate is 40 percent. a. Use the FTE approach to determine the value of the company's equity. (Round the answer to 2 decimal places.) Equity value b. What is the total value of the company? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Total value