What is the maximum price Cooper should be willing to pay for all of Nicholson's common stock? To answer this question, project Nicholson's free cash flows for the years 1972-1976 assuming a 6% per year growth in future sales. Assume that depreciation and net assets grow at the same rate as sales. Project EBIT and NA separately and then use the formula FCF = EBIT (1 - t) - NA to compute the projected free cash flows. For the years beyond 1976, assume that EBIT and net assets grow at a rate of 6% per year forever. Finally, the weighted average cost of capital (WACC) is 11%

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