Milano Pizza Club owns three identical restaurant popular for their special pizza. Each restaurant has a debt-equity ratio of 40% and makes interest payment of $34,000 at the end of each year. The cost of the form levered equity is 19 percent. Each store estimates that annual sales will be 1.2 million, annual cost of goods sold will be $510,000 and annual general and administrations costs will be #340,000. These cash flows are expected to remain the same forever. The corporate tac rate is 40%.

Using flow to equity approach to determine the value of the companys equity?