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Refer to the table containing a companys financial statements below: Year ending 30-Jun-18 Number of shares on issue 4,320,601 Cash $6,105,465 Company tax rate 30.00%

Refer to the table containing a companys financial statements below:

Year ending

30-Jun-18

Number of shares on issue

4,320,601

Cash

$6,105,465

Company tax rate

30.00%

Other assets

$87,554,597

Weighted average cost of capital

11.44%

per annum

Debt and liabilities

$32,190,949

Growth rate in FCFs from 2022

5.48%

per annum

Equity (book value)

$61,469,113

Year ending

30-Jun-18

Growth rate

30-Jun-19

30-Jun-20

30-Jun-21

30-Jun-22

Sales revenue

$78,528,535

3.20%

$81,041,448

$83,634,774

$86,311,087

$89,073,042

Operating expenses

$45,500,703

2.70%

$46,729,222

$47,990,911

$49,286,666

$50,617,406

Depreciation

$22,321,855

4.10%

$23,237,051

$24,189,770

$25,181,551

$26,213,994

EBIT

$10,705,977

$11,075,175

$11,454,093

$11,842,871

$12,241,642

Interest paid

$3,908,199

7.30%

$4,193,498

$4,499,623

$4,828,095

$5,180,546

Tax payable

$2,039,333

$2,064,503

$2,086,341

$2,104,433

$2,118,329

Net income

$4,758,445

$4,817,174

$4,868,129

$4,910,343

$4,942,767

Capital expenditure

$16,170,094

6.00%

$17,140,300

$18,168,718

$19,258,841

$20,414,371

Increase in working capital

$2,551,414

2.50%

$2,615,199

$2,680,579

$2,747,594

$2,816,284

(a) Work out last year's (year ending 30 June 2018) free cash flows and the projected free cash flows (30 June 2019 30 June 2022) from these extracts from the company's financial statements. (3 marks)

(b) Work out the Terminal Value of the free cash flows in 30 June 2021, using constant growth rate from 2022. (2 marks)

(c) Work out the enterprise value from the free cash flows and the terminal value. (2 marks)

(d) Display the value per share of the equity in this company. (2 marks)

(e) Recalculate the value per share, based on mid-year discounting (with a nominal conversion of the annual discount rate) of the free cash flows. (1 mark)

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