No Growth Incorporated had operating income before interest and taxes in 2011 of $220 million. The firm was expected to generate this level of operating income indefinitely. The firm had depreciation expense of $10 million that same year. Capital spending totaled $20 million during 2011 At the end of 2010 and 2011, working capital totaled $70 and 580 million, respectively. The firm's combined marginal state, local, and federal tax rate was 40% and its debt outstanding had a market value of $1.2 billion. The 10-year Treasury bond rate is 5% and the borrowing rate for companies exhibiting levels of creditworthiness similar to No Growth is 7%. The historical risk premium for stocks over the risk free rate of return is 5.5%. No Growth's beta was estimated to be 1.0. The firm had 2,500,000 common shares outstanding at the end of 2011. No Growth's target debt to total capital ratio is 30%. Select one or more a. estimated price per share is $52 m b. the value of the firm is $1.3B c. free cash flow to the firm in 2011 is 122 d the value of the firm is $100M e. estimated price per share is $40 free cash flow to the firm in 2011 is 112 M 9 the firm's cost of capital is 10 596 the firm's cost of equity is 10 59