a)Kenfront Ltd. is a firm that manufacturers personal computers. As a top manager in the firm, you are considering changes in the way the firm is run. Currently, the firm has after-tax opertaing income of Sh.50 Million on capital invested of Shs. 250Million(at the beggining of the year). The firm also reinvests Sh. 25 Million in net capital expenditures and working capital.

Required

Estimate the expected growth rate in earnings, given the firms current return on capital and re-investment rate

b) List and discuss five factors which should be considered when valuing a corporation

c) Discuss two approaches for calculating the terminal value in a multistage valuation