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calculate the Net cash flow and the value of equity Q. 3 The following information has been taken from the income statement and statement of

calculate the Net cash flow and the value of equity
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Q. 3 The following information has been taken from the income statement and statement of financial position of Badar & Co: Revenue $450 m Production expenses $235 m Administrative expenses $20 m Tax allowable depreciation $33 m Capital investment in year $50 m Corporate debt $15 m trading at 135 % o Corporate tax is 40 % o The WACC is 15.6%. Inflation is 6%. o These cash flows are expected to continue every year for the foreseeable future. (25 Marks) Required: Calculate the value of equity. . . Use the correct formulas and template Calculate the value of equity Provide all steps for the calculations

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