Third Cup is considering purchasing Canadian Tea Inc. (CT). Third Cup, a high-end food and beverage retailer, has been provided with the following information for Canadian Tea, for the next year.

Expected values for CT next year:	($)
EBIT	7,440,000
Interest payments	744,000
Depreciation and amortization expense	372,000
Deferred taxes	186,000
Increase in net working capital	744,000
Net capital expenditures	558,000
Corporate tax rate	42%

Third Cup has asked you to conduct the following analysis:

1. a) Estimate Canadian Teas free cash flow to equity for next year.

2. b) Estimate the total value of Canadian Teas equity, as well as on a per-share basis,

   assuming: a constant annual growth rate of 4.3% indefinitely, 650,000 shares issued, beta of 1.12, the expected market return of 9.8%, and the risk-free rate of 3.6%.

Thanks