Question three (25 marks) (a) Discuss four factor that impact the fundamental value of a firm (12marks) (b) ABC Ltd. is a company in the manufacturing sector. In the recent past, the company has faced stiff competition that has seen its market share reduce by ten percent. The management is considering acquisition as a strategy for attaining a near monopoly status. Consequently, it is contemplating acquiring XYZ Ltd. It is estimated that on successful acquisition, incremental cash flows to ABC Ltd. will be twenty million Kenya shillings at the end of the current period. Thereafter, incremental cash flows are expected to grow at an annual rate of 20 % each year for five years and 2 % each year thereafter forever. The estimated discounting rate during the high growth period and steady state period is 15% and 10% respectively How much should ABC Ltd, budget for in order to successfully acquire XYZ Limited (13 Marks)