Kenneth Cole Productions $($KCPKCP$)$ was acquired in $2012$ for a purchase price of $$$$15\mathrm{.}42$ per share. KCPKCP had $18\mathrm{.}5$ million shares$$ outstanding, $$$$46\mathrm{.}9$million in$$ cash, and no debt at the time of the acquisition.

a$.$ Given a weighted average cost of capital of $11\mathrm{.}4\%,$ and assuming no future$$ growth, what level of annual free cash flow would justify this acquisition$$ price?

b$.$ If KCP$\text{'}$s current annual sales are $$$$475\mathrm{.}0$million$,$ assuming no net capital expenditures or increases in net working$$ capital, and a tax rate of $28\%,$ what EBIT margin does your answer in part $($a$)$require$?$