Question 4 [24] You are invited to the shareholders meeting where they will discuss the disposal of 20% of the shares of Isilumko (Pty) Ltd to one of their biggest suppliers, Lucky (Pty) Ltd. To prepare for this meeting you are required to calculate the value of the shares of Isilumko (Pty) Ltd. You have the following extracts from the company's financial statements at your disposal: Proforma income and operating expenses of Isilumko (Pty) Ltd for the years 2022 -2024 2024 2022 Income Cost of sales Gross profit 4 350 000 (2 827 500) 1 522 500 2023 3 875 000 (2 441 250) 1 433 750 3 215 400 (1 993 548) 1 221 852 Operating expenses Accounting fees Bank charges Depreciation Finance cost Water and electricity Salaries and wages Profit before tax (150 000) (89 000) (50 000) (30 000) (112 000) (104 500) 987 000 (276 360) 710 640 (142 000) (78 000) (30 000) (28 000) (100 800) (139 950) 915 000 (256 200) 658 800 (138 000) (69 000) (20 000) (22 000) (90 720) (64 832) 817 300 (222 844) 594 456 Taxation T Profit after tax The company expects the cash flow to grow at 4% each year. The company's weighted average cost of capital is 12%. Isilumko (Pty) Ltd's authorised and issued share capital is 100 shares at R1.00 each. e Required: Calculate the value of 20% of the shares of Isilumko (Pty) Ltd using the free cash flow method. Round off your final answer to the nearest rand