Dandy wishes to make a takeover bid for the shares of an unquoted company, Herbage. The earnings of Herbage over the last five years have been as follows:

20X0 $220,000

20X1 $280,000

20X2 $270,000

20X3 $290,000

20X4 $350,000

The average P/E ratio of quoted companies in the industry in which Herbage operates is 20. Quoted companies that are similar in many respects to Herbage are:

• LP which has a P/E ratio of 40 and very good sustained growth prospects

• TD which has a P/E ratio of 12 and limited growth prospects

As Herbage is unquoted, Dandy will use 50% of whichever P/E ratio is selected to value Herbage.

Assuming Dandy uses the lowest historic profit figure as the most conservative estimate of future maintainable earnings, and based on the other figures above, what is the minimum amount that Dandy should offer? (in number format).