Kenneth Cole Productions (KCP) was acquired in 2012 for a purchase price of $ 14.84 per share. KCP had 18.1 million shares outstanding, $ 43.6 million in cash and no debt at the time of the acquisition. a. Given a weighted average cost of capital of 10.9 % and assuming no future growth, what level of annual free cash flow would justify this acquisition price? b. If KCP's current annual sales are $ 478 million, assuming no net capital expenditures or increases in net working capital, and a tax rate of 40% what EBIT margin does your answer in part(a)require.

a. Given a weighted average cost of capital of 10.9 % and assuming no future growth, what level of annual free cash flow would justify this acquisition price? The level of annual free cash flow that would justify this acquisition price is $million. ?(Round to two decimal places.)