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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
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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