Paysoft is a company that manufactures payment software. In the current year, the firm reported operating earnings before interest and taxes of $ 200 million (Operating earnings does not include interest income from cash), and these earnings are expected to grow 4% a year in perpetuity. In addition, the firm has a cash balance of $ 250 million on which it earned interest income of $ 20 million. The unlevered beta for other payment software firms is 1.20, and these firms, have, on average, cash balances of 10% of firm value. If Paysoft has a debt ratio of 15%, a tax rate of 40%, a return on capital of 10% on operating assets, and a cost of debt of 10%, estimate the value of the firm.

[The 10-year Treasury Note yield is 6% and the historical market risk premium is 5.5%.]