Company J is expected to pay a dividend of R5 next year. It is expected that dividends will then grow at 3% per annum for the foreseeable future. The company's cost of equity is 10%. What would a share of the company's equity be worth today? Also comment on whether you would buy a share of the company's stock as an investment if it is currently trading in the market for R60.

2.2 Company X is expected to generate free cash flow of R1 000 000 next year. It is expected that this will grow at a constant rate of 3% per annum for the foreseeable future. The company has a WACC of 13%. What is the company's value presently?