Question $3(15$ points. Each part worth $5$ points$)$

A firm$$s stock is currently trading at $$40$ per share. Assume that the firm is in a stable growth phase with an expected long$-$term cashflow growth of $2\mathrm{.}5\%.$ Effective tax rate is $25\%.$ The firm$$s debt carries a BBB credit rating. Most recent data available for the firm is as follows

All in $ millions except per share amounts and percentages

EBIT $$341$

Capex $$25$

Depreciation expense $$50$

Change in Accounts Payable $-$ $$45$

Change in Inventories $-$ $$25$

Change in Accounts Receivable $-$ $$50$

Total debt $$1000$

Cash and cash equivalents $$100$

Shares outstanding $88$

Beta $1\mathrm{.}25$

Default spread on BBB rated firms $1\mathrm{.}5\%$

Market risk premium $5\mathrm{.}5\%$

Yield to maturity on $30-$year Treasury $2\mathrm{.}9\%$

a$.$ What is the firm$$s WACC? b$.$ What is the firm$$s free cash flow?

c$.$ What is the firm$$s enterprise value and price per share?