6. Your company plans to relocate part of its offices outside Paris and to maintain, as much as possible, part of its employees' activity in teleworking for at least 5 years. This decision is expected to reduce operating costs by 200,000 euros per year.

a) If investors were not expecting such a change, what would be the most likely effect on your company's share price once this announcement is made, given that your company has 50,000 shares outstanding, no debt and a 10% cost of equity of capital?

b) What is the most commonly employed and relevant discount rate when valuing a company using the free cash flow valuation method?