Briefly describe and discuss the following five forms of share buybacks in Australia, including a short description of the characteristics of each form:

1. On market buybacks
2. Equal access buybacks
3. Employee share scheme buybacks
4. Selective buybacks
5. Minimum holding buybacks.

Using the following information, estimate the value of Sardinia Ltd, an e-commerce start-up company:

Company and operations set-up costs (total immediate expenditure) $2,000,000; Year one (end) free cash flow $2,400,000; Year two (end) free cash flow $2,700,000. You also estimate that the constant growth rate in free cash flows from year three will be 2.5 percent per annum. You intend to sell this start-up company after two years of operation. The required rate of return on similar projects is 10 percent per annum.

Required:

1. Estimate the terminal value of this business at the end of year two.
2. Estimate the present value of this business given the information provided.