b) Use the forecast information below to estimate the value per share of Babbage Computers Inc: 2021 2022 2023 3,550 4,250 5,795 500 520 550 1,200 1,500 Details ($m) EBIT Depreciation and amortisation Increase in working capital Net purchase of non-current assets Net purchase of investments Net Cash Flow from Investing Activities 2,000 (1,587) (1,286) (750) (1,994) (1,200) (898) (2,036) (2,485) (3,114) Free cash flow to capital will grow at 2% per annum in perpetuity from 2024. Babbage Computers Inc has outstanding debt of $4,550m. Its current cost of capital is 10%. Assume that the marginal tax rate is 30%. Babbage Computers Inc has 250,000,000 shares outstanding. b) Use the forecast information below to estimate the value per share of Babbage Computers Inc: 2021 2022 2023 3,550 4,250 5,795 500 520 550 1,200 1,500 Details ($m) EBIT Depreciation and amortisation Increase in working capital Net purchase of non-current assets Net purchase of investments Net Cash Flow from Investing Activities 2,000 (1,587) (1,286) (750) (1,994) (1,200) (898) (2,036) (2,485) (3,114) Free cash flow to capital will grow at 2% per annum in perpetuity from 2024. Babbage Computers Inc has outstanding debt of $4,550m. Its current cost of capital is 10%. Assume that the marginal tax rate is 30%. Babbage Computers Inc has 250,000,000 shares outstanding