=The company is expecting annual capital expenditure of €300m per year over the next five years; working capital will increase by €50m in years 1 and 2, and stabilise thereafter. The following information is also available:

◦ the company has net debts today of €2250m;

◦ the company’s cost of equity is estimated at 10%, and the cost of debt at 6% (before tax);

◦ financing is split 2/3 equity and 1/3 debt;

◦ the tax rate is 37%;

◦ an increase in inflows of 2% to perpetuity can be expected from year 6.

Work out the value of Management plc using the DCF method.