"Company A is owned by its three directors and they want to sell the business. The current profit after tax is $$500,000.$ At the moment the directors are only paid small salaries as they take most of their returns in the form of dividends. Once the company is sold, the cost of directors salaries in Company A will need to be increased by $$40,000$ in total to attract sufficiently high$-$quality new directors. A suitable P$/$E ratio is $5$ and the tax rate is $30\%.$ What is the value of Company A$,$ using a P$/$E valuation?"