An analyst has collected the following information about Franklin Electric: Projected EBIT for the next year is $300 million. Projected depreciation expense for the next year is $50 million. Projected capital expenditures for the next year is $100 million. Projected increase in operating working capital next year is $60 million. Tax rate is 40%. WACC is 10%. Cost of equity is 13%. Market value of debt and preferred stock today is $500 million. Number of common shares outstanding today is 20 million.