Kinston Industries is a listed company in New York. Its current before interest after-tax operating cash flows is $200 million. The cash flows are expected to grow at 8% per annum over the next three years, after which the growth will fall to 4% per annum and stay at this rate forever. The following information is also available:

Tax rate	25%
Risk-free rate	3%
Market return	12%
Equity beta	2
Cost of debt	7%
D/E	40%

a)Given the above data, Kinstons cost of equity is around:

b)Industries KinstonGiven the above data, the after-tax weighted average cost of capital (WACC):

c)Using the free cash flow methodology, the value of Kinston Industries is around: