Baseball Warehouse owns three identical stores. Each store has a debt-equity ratio of 30% and makes interest payments of $43,000 at the end of each year. The cost of the firm's levered equity is 16%. Each store estimates that annual sales will be $1.29 million,annual cost of goods sold will be $750,000,and annual general and administrative costs will be $410,000. These cash flows are expected to remain the same forever. The corporate tax rate is 21 percent.

Using the flow to equity approach, what is the value of the company's equity?

What is the total value of the company?