Q$2$

You are evaluating the stock of Duff Beer, and you have decided to use free cash flows to the firm and free cash flow to equity as your two models. You project that next year Duff will have EBIT of $$399$ million, depreciation expense of $$198$ million, capital expenditure of $$189$ million, and an increase in net working capital of $$45$ million. Duff has debt of $$2\mathrm{.}3$ billion, but that's not expected to change in the foreseeable future. The debt generates annual interest expenses of $$53$ million. Duff's tax rate is $11\%,$ its cost of equity is $14\mathrm{.}1\%,$ and its weighted average cost of capital is $4\mathrm{.}6\%.$ You project that free cash flows to the firm will grow at $0\mathrm{.}6\%$ indefinitely, and that free cash flows to equity will grow at $3\mathrm{.}8\%.$ If Duff has $459$ million shares outstanding, what is the most you would payfor a share? $(30$ points total$)$

$\backslash$table$[[$EBIT$,$$$,399,000,000$