Maritech (Pty) Ltd is an unlisted Cape Town-based marine engineering company that has been in operation for 20 years. Maritech is owned and run by four partners, each of whom has a 25% shareholding. The eldest shareholder (Mr. Bolt) is planning to retire and has hired you to value his 25% shareholding based on the following information: You have received the audited annual financial statements for the last 3 years, as well as the 4- months management accounts for 2022 (see Exhibit 2.1). The company has a long-term bank loan of R2.5 million (the overdraft rate is 6.5%). In addition to normal operations, the company also has specialised manufacturing equipment that has been independently valued at R2 million. After extensive discussions with management, it has been agreed that the forecast will be produced by: o Annualising the management accounts for 2022; and o Using the expected growth rates for 2023-2026 (see Exhibit 2.2) Discussions with Mr. Bolt indicate that you will also need to adjust the expenses in your forecast for the following changes: o If Mr. Bolt retires then his annual salary of R650,000 escalating at 10% p.a. will fall away from 2023 onwards. o If Mr. Bolt retires then annual keyman insurance will decrease by R30,000 from 2023 onwards. o If Mr. Bolt retires then his car and personal expenditure which currently goes through the company will also fall away, saving the company R150,000 p.a. from 2023 onwards. Since there isnt enough information to calculate the relevered beta, you assume beta is 1. Based on your experience, you use a MRP of 6% and a URP of 10%. Using Bloombergs, you obtain the relevant financial and macroeconomic information needed to conduct your valuation (see Exhibit 2.3): You deem a 15-year terminal with a growth rate of 5% to be realistic. It is agreed that there is to be no liquidity or minority discounts. REQUIRED: a) Use Exhibit 2.3 to calculate Maritechs WACC. (5 marks) b) Use your calculated WACC and the Exhibits to calculate the 25% equity value of Maritech, show your calculations on Table 2.1