Hogs Breath Inns, a chain of restaurants, is considering going private. The president, Clint Westwood, believes that with the elimination of shareholder servicing costs and other costs associated with public ownership, the company could save $800,000 per annum before taxes. In addition, the company believes management incentives and, hence, performance will be higher as a private company. As a result, annual profits are expected to be 10 percent greater than present after-tax profits of $9 million. The effective tax rate is 30 percent; the price/earnings ratio of the stock is 12; and there are 10 million shares outstanding. What is the present market price per share? What is the maximum dollar premium above this price that the company could pay to take the company private?