Today is the end of the year (year 0) and Kappa Co is preparing for an initial public offering. This years (year 0) sales were $2.3 million. Kappa expects its sales to be $2.5 million in the first year (year 1). Kappas sales are expected to increase by $0.2 million in year 2. After year 2, Kappas free cash flows are expected to increase by 1% in perpetuity. Kappa's EBIT margin is expected to stay constant at 35%. Kappa's existing net plant, property, and equipment at the end of year 0 is $1 million and will be depreciated to zero over the next four years, using the straight-line method. At the end of each year, Kappa will spend 10% of its sales as capital expenditures. Capital expenditures will start depreciating in the following year. For example, depreciation expenses for capital expenditures made at the end of year 1 will start in year 2. Year 0s capital expenditures are included as part of net PP&E already. Capital expenditures will be depreciated to zero over five years, using the straight-line method. Kappa requires working capital that is 15% of sales. Kappa has 2 million shares outstanding, which are trading at $1 per share in the OTC markets, prior to the IPO. The market value of Kappa's debt is $1 million. Kappa's before-tax cost of debt is 7%, the risk-free rate is 3%, and the expected market return is 10%, and the unlevered beta for comparable firms is 1.1. The tax rate is 30%. Assume all cash flows occur at the end of the year. What is the fair value of Kappa's shares as of today, according to the DCF method