4.) Kenneth Cole's (KCP) had sales of $518 MM in 2010. Suppose you expect its sales lu grow at 9% in 2011, but this rate will slow down by 1% per year to a long-run growth rate for the apparel industry of 4% by 2016. Based on KCP's past profitability and investment needs, you expect EBIT to be 9% of sales, increases in net working requirements to be 10% of any increase in sales, and capital expenditures to equal to depreciation expenses. If KCP has $10 MM in cash, $100 MM in debt at 6% interest rate and has 21 MM shares outstanding, a tax rate of 37% and a WACC of 11%, what is your estimate of the value of KCP's stock in early 2011