You are analyzing a private company that makes tires. You expect net income of $25 million for the private company next year. There is a public company called Hitires traded on the ASX that operates in the same industry. Both of these companies have a cost of equity of 10%. Analysts expect growth of 4% per year for Hitires. Hitires has a payout ratio of about 85%, which is expected to remain constant in the future. Do not consider other factors that are not stated here. a) What is Hititres' forward P/E ratio? b) Assume that you found a forward P/E ratio of 20 in part (a). Do not use your actual answer from part (a). If the private company and Hitires are good comparables, what is your estimate of the private company's market capitalization?