You are trying to estimate the brand name value for Steinway, one of the worlds best-known piano manufacturers. The firm reported operating income of $30 million on revenues of $100 million in the most recent year; the tax rate is 40%. The book value of capital at the firm is $90 million, and the cost of capital is 10%. The firm is in stable growth and expects to grow 5% a year in perpetuity.

Assume now that the operating profit margin (EBIT/sales) for generic piano manufacturers is half of the operating profit margin for Steinway. Assuming generic piano manufacturers have the same stable growth rate, capital turnover ratio, and cost of capital as Steinway, what is the value of the Steinway brand name?