Staples has a net income of $20 million, depreciation expense of $4 million, and capital expenditures of $5 million. Staples has an expected constant growth rate of in FCF of 2.2%, and an average tax rate of 38%. Assume that Staples has a debt-to-equity ratio of 0.3 (with $70 million in debt); the current equity beta is 1.25; the risk-free rate is 2%; and the market risk premium is 5%.

a) Calculate Staples' asset beta. Round to three decimals. (1 mark)

b) Calculate Staples' required rate of return. Round the percentage to two decimals. (1 mark)

c) Determine Staples' free cash flow. (1 mark)

d) Determine Staples' net equity value. Round the answer in millions to one decimal.