Rosmoss (Pty) Ltd, a South African company with a target capital structure of 2:1 (debt/equity), manufactures turbines and propellers. The company was founded three years ago by Shona Mapisane, a flamboyant businesswoman from Limpopo. Shona is interested in selling the business as she is currently experiencing financial problems. She has requested you to perform a discounted free cash flow valuation of Rosmoss on 1 January 2022. She provided you with the following information relating to the financial year end 31 December 2021: Profit after tax amounted to R8 800 000, which includes depreciation on assets of R2 000 000. The expectation is that Rosmoss will experience nominal growth over the next few years as follows: 2022: 4% 2023: -6% 2024: 8% After 2024 it is expected that the company will maintain a real growth rate of 4% into perpetuity. The company has a long-term loan of R7 000 000, on which it paid R600 000 in interest during the year. A similar loan can currently be obtained at an interest rate of 7.5% per annum. Included in the companys property, plant and equipment is a holiday house situated in Durban. Shona and her family currently occupy the house at no cost. Shona has indicated that she will be keeping the house for herself for personal use. The house generated rental income of R100 000 and expenses of R40 000 for the year ended 2021 (amount are included in profit after tax). Net working capital for the year ended 31 December 2020 is R570 000. Financial statements for 31 December 2021 reflect a decrease in net working capital of R60 000. Current assets have always been more than current liabilities. It is expected that non-current assets will be replaced at an annual cost equal to inflationadjusted depreciation. After conducting some research, you determine that inflation is expected to remain stable at 5% for the foreseeable future. You estimate that equity providers require a return of 30% from a business like Rosmoss. REQUIRED: 1.1 Prepare a report in which you advise Shona on the value of her shareholding in Rosmoss (Pty) Ltd on 1 January 2022.