Forest Gump (Pty) ltd is a company located in the Eastern Cape Province. It was formed 10 years ago under the Eastern Cape Rural development programme. It is involved in timber production business. Since its formation it has never paid a dividend. It is also not clear when it might begin paying a dividend. The free cash flows are currently R1000 000. The free cash flows are expected to grow at a constant rate of 7% per year. The weighted average cost of capital is 11%. Forest Gump (Pty) ltd has marketable securities valued at R3 250 000. The marketable securities are not part of the operations. It has a long-term debt of R10 000 000. It has no preference shares. Forest Gump has 500 000 outstanding ordinary shares.

a)	Determine the value of Forest Gumps operations	[1 mark]
b)	Determine the total value of Forest Gump (Pty) ltd	[1 mark]
c)	What is the value of ordinary shareholders equity?	[1 mark]
d)	What is the estimated share price?	[1 mark]