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Fwebene PLC's net cash flow after tax in the year just ended was K60 million. Fwebene expects that its net cash flow after tax will

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Fwebene PLC's net cash flow after tax in the year just ended was K60 million. Fwebene expects that its net cash flow after tax will be increasing by 6% per year in the first 3 years, and thereafter by an average rate of 3% per year for the foreseeable future. The appropriate discount rate for evaluating the cash flows of Fwebene PLC is estimated at 9.7%. a. What is the present value of cash flows at year 3 looking forward? [ b. What is the market value of Fwebene PLC? [ . Briefly explain why some companies such as Amazon have their share prices rising despite the economic lockdown ). N

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