Below you will find the simplified income statement and balance sheet of Kenan Inc. at the end of 2012 for the past 12 months. (All numbers are in millions)

	INCOME STATEMENT
Sales	250
COGS	145
Depreciation	40
SG&A	60
EBIT	5
Interest	5
Tax	0
Net Income	0
	BALANCE SHEET
Assets
Cash	90
Accounts Receivable	20
Inventory	0
Total Current Assets	110
PP&E	120
Goodwill	100
Total Assets	330
Liabilities
Accounts Payable	45
Long-term Debt	80
Total Liabilities	125
Stockholders Equity	205

In addition, you make the following assumptions about future growth:

Sales are expected to grow at the rate of 20% for the next five years (until December 31, 2017), and thereafter the growth rate is expected to drop to 0%

Net capital expenditures (i.e. Capex - Depreciation) are equal to 50% of sales growth over the next year.

The ratio of Net Working Capital to Sales will stay constant.

The ratio of all costs (COGS, depreciation, and SG&A) to sales will remain constant for the next four years. Starting in year 5 (ending December 31, 2017) and thereafter, you make the following assumptions about costs:

COGSs are 50% of sales

Depreciation is 20% of sales

SG&A is 15% of sales

The tax rate is expected to be 33.33%

a. Forecast the unlevered free cash flows of Kenan Inc. over the next six years (including the year ending in December 31, 2018).

b. Beta of Kenan Inc. is 1.75, D/E of Kenan is 0.25, current risk-free rate is 3%, Kenans cost of debt is 4.5%, and the market risk premium is 4%. Using this information, estimate the WACC of Kenan Inc.

c. Find the Enterprise Value of Kenan Inc., as well as the equity value.

d. Assuming that Kenan Inc. has 40 million shares outstanding, what is the stock price?