Part A (20 Marks) Borwa Oxygen Limited (BOL) is a South African company listed on the ISE Ltd. BOL manufactures and supplies gas from 120 different sites across South Africa. Energy Investment Limited (EIL), an investment company based in Johannesburg, is in the process of acquiring 61% shareholding in BOL. The directors of EIL have approached you to assist in valuing BOL and have provided you with the following information: 1. Capital structure information as at 31 December 2021 BOL Total market value of equity R480 000 000 Total market value of debt R720 000 000 Number of shares outstanding 100 000 000 Market-related cost of debt 6% 2. BOL's free cash flow (attributable to all capital providers) for the year ended 31 December 2021 is estimated to be R92 500 000. The following nominal growth rates will be applicable to this cash flow in the future: 2021 2022 2023 2024 5% 6% -2% 5% The growth rate will remain stable at 5% beyond 2024. 3. Market-related data (31 December 2021). BOL Dividend yield 10% Dividend growth projections 4.7% Market risk premium 4% Beta 1.13 Required: Calculate the value of the 61% shareholding in BOL on 1 January 2022. (20) Hint: Perform a Free cash flow valuation