Kenneth Cole Productions (KCP) was acquired in 2012 for a purchase price of

$ 14.84 per share. KCP had 18.1 million shares outstanding, $ 43.6 million in cash and no debt at the time of the acquisition.a. Given a weighted average cost of capital of

10.9 % and assuming no future growth, what level of annual free cash flow would justify this acquisition price?b. If KCP's current annual sales are

$ 478 million, assuming no net capital expenditures or increases in net working capital, and a tax rate of

40% what EBIT margin does your answer in part(a)require.

a. Given a weighted average cost of capital of

10.9 % and assuming no future growth, what level of annual free cash flow would justify this acquisition price?The level of annual free cash flow that would justify this acquisition price is

$million.(Round to two decimal places.)