You are thinking of investing in Crayola Inc., a debt-heavy, money losing toy company. The company reported revenues of $100 million and an operating loss of $20 million in the most recent year and has a cost of capital of 12%. The company had $300 million in debt (face value) outstanding, with a weighted average maturity of 8 years. Toy companies typically trade at Enterprise Value/Sales ratios of 2.5, and the standard deviation in value is 20%. Estimate the value of equity in the company, viewed as an option. (The risk free rate is 3%)