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Question 3 [21] The chief financial officer (CFO) of Quinn Logistics wants to determine the value of its shares using the free cash flow method.
Question 3 [21] The chief financial officer (CFO) of Quinn Logistics wants to determine the value of its shares using the free cash flow method. The CFO calculated the free cash flows for the period 2015- 2019 as follows: Quinn Holdings: Free cash flows 2015-2019 Year FCF 2015-2016 2015 650 000 2016 720 000 2017 775 000 2018 825 000 2019 880 000 Additional information: FCF growth after 2019 to infinity Weighted average cost of capital (WACC) Market value of debt Market value of preference shares Number of ordinary shares issued 5% 11% R4 200 000 R1 200 000 200 000 2 . Required: Apply the free cash flow method to the information provided by the CFO to calculate the value of an ordinary share of Quinn Holdings Show all calculations and round off all values to the nearest whole number
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