Third Cup Is Considering Purchasing Canadian Tea Inc

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.

Third Cup has asked you to conduct the following analysis:
a)Estimate Canadian Tea's free cash flow to equity for next year.
b)Estimate the total value of Canadian Tea's equity, as well as on a per-share basis.
For purposes of this problem assume the following:
(i)a constant annual growth rate of free cash flow of 4.3% indefinitely
(ii)Canadian Tea has 650,000 shares outstanding
(iii)the appropriate beta is 1.12
(iv)the expected market return is 9.8 percent
(v)the risk-free rate is 3.6 percent.