10:26 pm Tue 12 Nov @ 48% 5 000 K L8_Raising Capital X L9_CapitalStructure X AFIN102_201951 X L3_FCF X L10_payout_update Question 7 (8 MARKS) Northern Beaches Gluten Free Bakery is expected to have free cash flows as follows: 1 2 3 4 5 ... FCF ($m) 10 12 13 11 Growing by -1% per year (negative growth) Year a) Northern Beaches Gluten Free Bakery has 5 million shares outstanding, and no debt. If the cost of equity is 10%, what should its share price be? (4 marks) b) Assume you bought Northern Beaches Gluten Free Bakery shares at the beginning of year 1 and you have not received any dividends. What is your return expected to be from holding Northern Beaches Gluten Free Bakery shares until year 3? (4 marks)