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. Assume (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, and (v) the risk-free rate is 3.6 percent.