Lambda Inc., which is a manufacturing firm, reported EBIT of $$3000$ million. It also reported depreciation of $$600$ million and capital spending of $$1\mathrm{.}5$ billion, working capital requirements are $$120$ million. The firm has $$6$ billion in debt outstanding, currently trading at par, rated AA with a yield to maturity of $9\%.$ The beta of the stock is $1\mathrm{.}30,$ and there are $400$ million shares outstanding trading at $$60$ per share, with a book value of $$7$ billion. The Treasury bond rate is $5\%,$ the market risk premium is $7\%$ and the corporate tax rate is $30\%.$

a$.$ Estimate the current free cash flow to the firm.

b$.$ What is the expected growth of operating income?

c$.$ What is the cost of capital of Lambda Inc.?

d$.$ Estimate the value of Lambda Inc.

e$.$ Estimate the value of equity of Lambda Inc.

f$.$ Based on your estimation, what is the value of equity on a per share basis? Is Lambda Inc. correctly priced by the market? State an example of trading strategy you can use to take advantage of any current market mispricing.