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) Cash and equivalents Accounts receivable Inventory Total current assets 2018 R149 295 275 R719 2017 R83 265 285 R633 Total fixed assets 3 909 3 856 Accounts payable Notes payable Total current liabilities 228 0 228 220 0 220 Long term debt 1 800 1 650 3.909 3856 Total liabilities and shareholders 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% Cost of equity of the firm: 10% Tax rate 40% Table 2: FBC statement of comprehensive income . (R millions except for share data) Total revenues EBIT Interest expense Net Income Dividends per share 2018 R3 175 495 104 235 R0.80 2017 R3 075 448 101 208 R0 80 I Use the information given, to answer the following: a) Calculate the Free Cash Flow to the Furm (FCFF) for the year 2018. [7 marks] b) You are told that the Free Cash Flow to Equity (FCFE) of the fim 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) 113 marks]