3. Answer all parts: a) At the end of its financial year 2021, an analyst made the following forecast for Next plc for financial years 2022-2025 (in millions of pounds): Cash Out-flows Investment Cash In-flows from Operations E 2022 2560 1200 2023 3420 1500 2024 3500 2400 2025 3600 2000 Next plc reported 5500 million in total debt at the end of 2021. Required: 1. II. Use a required rate of return of 10% to calculate both the enterprise value and equity value for Next plc at the end of 2021 under the following two scenarios for the long-run position of the company's cash flows: i. Free cash flow will remain at 2025 levels after 2025. ii. Free cash flow will grow at 4% per year after 2025. (15 marks) Assuming Next plc had 400 million shares outstanding at the end of 2021, calculate the value per share under both scenarios. Based on your valuation, recommend a trading strategy if the quoted price on the stock exchange is currently at 30 per share. (10 marks) b) In conducting valuation analysis, critically discuss activities which determine the value of a firm. Provide examples to support your argument. (25 marks)