3.) a) Briefly explain the circumstances under which the management of a company, acting in the interest of its existing shareholders, might issue shares in order to finance a small project with negative expected net present value. marks) b) Explain some of the adjustments we need to make in order to separate operating, financing and investing activities when reformulating financial statements. (5 marks) c) Write down three accounting relations connecting free cash flow, operating income, net operating assets, net financial expense, net financial obligations and payments to debt and equity holders. Explain these relations in your own words. (6 marks) d) You have the following information for Vistofte. The company's financial year is the calendar year. DKK '000 2021 2020 330,140 310,200 Net operating assets Financial assets 62,940 59,340 Financial obligations 174,650 165,600 Common shareholders' equity 218,430 203,940 An analyst predicts 2022 operating income of 49,600; a long term free cash flow growth rate of 3% from year 2022 to infinity; and arrives at a valuation of Vistofte's equity, at the end of 2021, of DKK 432,100,000. (1) What weighted average cost of capital is the analyst using? Give your answer as a percentage to two decimal places. (6 marks) (ii) Given net borrowing cost of 5%, calculate Vistofte's free cash flow to equity in 2021. Give your answer to the nearest DKK million. (4 marks)