ii) Estimate the Corporation's value per share using the FCFE discount model. (4 marks) What is the value of a 15 year corporate bond with a coupon rate at 9% a) Mamamiya Corporation paid out dividends per share of Sh. 3.76 in the current year. However, the corporation had a free cash flow of equity of Sh. 4.0 per share in the same year. Assuming the firm has attained a stable growth rate of say 5% per year for ever and that the firms beta is 1.4, market rate of return being about 8% and a riskless rate of return of 3%. Required: QUESTION FOUR. [15 MARKS] A company is considering two manually exclusive projects. They are the only projects available. The risk free rate is 5%. The cash flows from the projects are known with certainty and are given in shillings (millions) below: a) Which project has the higher net present value? ( 7 marks) b) You now notice that the project have unequal lives. What would you do now to determine the better project? Which project would you recommend? ( 8 marks) ii) Estimate the Corporation's value per share using the FCFE discount model. (4 marks) What is the value of a 15 year corporate bond with a coupon rate at 9% a) Mamamiya Corporation paid out dividends per share of Sh. 3.76 in the current year. However, the corporation had a free cash flow of equity of Sh. 4.0 per share in the same year. Assuming the firm has attained a stable growth rate of say 5% per year for ever and that the firms beta is 1.4, market rate of return being about 8% and a riskless rate of return of 3%. Required: QUESTION FOUR. [15 MARKS] A company is considering two manually exclusive projects. They are the only projects available. The risk free rate is 5%. The cash flows from the projects are known with certainty and are given in shillings (millions) below: a) Which project has the higher net present value? ( 7 marks) b) You now notice that the project have unequal lives. What would you do now to determine the better project? Which project would you recommend? ( 8 marks)