26) You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company's 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: Table 1: FBC statement of financial position (R millions) 2018 2017 | Cash and equivalents K149 Accounts receivable 290 263 Inventory 20 280 Total current assets K/19 K055 Total fixed assets 3909 3856 Accounts payable 228 220 Notes payable 0 Total current abilities 228 220 Long term debt 1800 Total abilities and shareholders 3909 3856 equity Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the course of 2018 WACC:15% 9 Cost of equity of the firm: 10% Tax rate : 40% Table 2: FBC statement of comprehensive income (R millions except for share data) 2018 Total revenues K3 1/3 2017 KJVID EBIL 493 448 Interest expense 104 101 Net income 253 208 Livienas per share KU.SU KU.SV Use the information given, to answer the following a) Calculate the Free Cash Flow to the Firm (FCFF) for the year 2018. [7 marks] b) You are told that the Free Cash Flow to Equity (FCFE) of the firm will continue to grow at a rate of 5% for the next 3 years, after which it will stabilize to a rate of 3%. Calculate the intrinsic value of each of FBC" shares. 9 (Use 2.d.p in your calculations & final answer for this question)