Milano Pizza Club owns a chain of three identical restaurants for their Milan style pizza. Each store has $270,000 in debt outstanding and a debt-to-equity ratio of 30 percent. The prevailing market interest rate is 9.5 percent. An equivalent all-equity financed store would have a discount rate of 15 percent. 

For each store, the estimated annual sales are $1,000,000, cash costs to generate these sales are $400,000 annually, depreciation charges are $300,000 annually, and capital expenditures are $300,000 annually. Each of these values is assumed to continue in perpetuity with no growth. The corporate tax rate is 40 percent. 

Using the FTE approach, what is the value of Milano’s Pizza Club?