Question 3. 5 Marks Use the residual income valuation model and the forecasts and the other relevant data from the table below to compute equity value per share. 2007 2008 2009 2010 2011 2012 2006 forecast forecast forecast forecast forecast forecast Cost of capital for equity (r.) & discount factors 11.00% 1.110 1.232 1.368 1.518 1.685 1.870 Cost of capital (WACC) and discount factors 10.73% 1.107 1.226 1.358 1.843 RI Model - Terminal value growth rate 2.05% Sales Profit margin (PM) Free cash flows (FCF) Net transactions with shareholders (d) 2,048,947 2,479,226 19.0% 19.0% - 189,371 -126,557 58,395 70,658 2,925,487 3,364,310 19.0% 19.0% -63,964 29,742 | 83,376 95,883 3,868,957 4,449,300 19.0% 19.0% 34,204 3 9,334 110,265 | 126,805 Net operating assets (NOA) Net operating profit after tax (NOPAT) 2,845,760 3,443,370 389,300 471,053 4,063,177 4,672,653 5,373,551 6.179,584 555,843 639,219 735,102 845,367 Shareholders' equity (BVE) Comprehensive income (CI) Number of common share on issue 1,991,985 2,300,882 2,657,686 3,067,298 3,530,9644,064,465 4,678,300 367,292 427,463 492,988 559,549643,767 740,640 771,781