To attain capacity operations it would cost $450m in present value terms. Alternatively, the company could acquire an existing firm or division with the desired capacity. One such opportunity is the division of another company. The book value of the division's assets is $250m and its earnings before interest and tax are presently $50m. Publicly traded comparable companies are selling in the narrow range of around 12 times current earnings. These companies have book value debt to asset ratios averaging 40 percent with an average interest rate of 10 percent.

Using a tax rate of 34%, estimate the minimum price the owner of the division should consider for its sale