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This year, Stang Fabrications Inc. has EBIT of $9,900,000, depreciation expenses of $1,100,000, capital expenditures of $1,700,000, and has increased its net working capital by $425,000. If its tax rate is 30%, what is its free cash flow? Portage Bay Enterprises has no debt, $1.4 million in cash, and is expected to have free cash flow of $11 million next year. It is then expected to grow at a rate of 5% per year forever. If Portage Bay's equity cost of capital is 11% and it has 8 million shares outstanding, what should the price of Portage Bay's stock be? You notice that Cilley Sodas has a share price of $40.16 and EPS of $1.99. Its competitor Pure Soda has EPS of $3.97. Jericho, a much smaller batch craft soda producer, has a P/E ratio of 32 . Based on this information, what is one estimate of the value of a share of Pure Soda stock