Asterix Inc. is a mature company whose management team has a poor track record. There is a possibility that there will be a management turnover to replace the poor performing CEO. You have the following information:

With incumbent management team, the firm will:

- Generate $50 million in after-tax operating income next year

- Reinvest $20 million of this after-tax operating income

- Generate a constant growth of 3% a year in perpetuity

- Have a cost of capital of 7%

If there is management turnover, this is your expectation under the new management:

- $50 million in after-tax operating income next year

- Generate constant growth of 3% a year in perpetuity

- Cost of capital: 7%

- The return on capital will double from its current level

You estimate the probability of a management turnover at 30%. What is the expected value of the operating assets?