Pompeii Pizza Club owns three identical restaurants popular for their specialty pizzas.

Each restaurant has a debt$-$equity ratio of $45$ percent and makes interest payments of

$$51,000$ at the end of each year. The cost of the firm's levered equity is $16$ percent. Each

store estimates that annual sales will be $$1\mathrm{.}41$ million; annual cost of goods sold will be

$$790,000$; and annual general and administrative costs will be $$450,000.$ These cash

flows are expected to remain the same forever. The corporate tax rate is $24$ percent.

a$.$ Use the flow to equity approach to determine the value of the company's equity. $($Do

not round intermediate calculations and enter your answer in dollars, not millions

of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89)$

b$.$ What is the total value of the company? $($Do not round intermediate calculations and

enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places,

e$.$g$.,1,234,567\mathrm{.}89)$

a$.$ Value of the company's equity

b$.$ Value of the company