Figures in millions Year 0 1 2 3 EBIT* $220 $240 $260 Depreciation 27 30 32 Net capital expenditures 45 50 55 Total net working capital for the year (NWC) $8 10 11 14 Value of total debt $300 Tax rate = 25% Number of shares outstanding = 30 *EBIT = Earnings before interest and taxes = Revenues - Total Costs - Depreciation Firm X has no preferred stock. The firm's required rate of return (or weighted average cost capital) is 16 percent. The tax rate is 25%. a) Find the free cash flow to the firm for Firm X for each year from year 1 to year 3. b) Firm Y is a comparable firm to Firm X. You estimate Firm Y's EBIT multiple (defined as value of Firm Y / Firm Y's EBIT) in year 3 to be 11. Find the stock price per share of Firm X using free cash flows from year 1 to year 3 from (a) and the terminal value (or continuing value) calculated from the comparable-multiple approach