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Surrey is a county south west of London. The area is well known for its natural beauty and holds vast areas of forests.One of the
Surrey is a county south west of London. The area is well known for its natural beauty and holds vast areas of forests.One of the major companies operating in the area is Surrey Forestry Plc located in Woking but also have some operation alassets in the area surrounding the city. The main objective for the company is to maintain its vast holding of forests that currently amounts to hectare. The main shareholder of the company is the Brimming family who have controlled the company since its inception in However since the company is listed on the stock market in London and the Brimming family holds stake in the company and of the voting rights. Currently the chairman of the board is Lizette Brimming. Prior to her assignment as chairman she held a number of senior positions at Royal Bank of Scotland with a focus on merger and acquisition. Lizette was appointed as chairman in as her predecessor could not cope with the new situation given by the listing.During the last board meeting the board decided to keep the required ROI, return on investment, at and that considering the discounted value of expected cashflows except for financial investments. For financial investments the return needs to exceed The CEO for the company is Ellen King who for long have served the company in different positions. The board have authorized her to set Base Required Rate, BRR as well as risk premium, RP to be added to BRR when needed. Together with Ken Hammersmith, CFO, Ellen has decided to set the BRR at and RP at RP at and RP at Ken has been asked to make an analyse of a company based on the information below in order to understand the potential cash flow from the company. The company has a revenue of with an expected growth of annually. Given the uniqueness of the company they operate with an operating profit margin of and the tax rate is Within the planning horizon the company needs to invest annually to deliver new projects and products. of the growth is needed to cover for additional investments .
Based on this present the analysis Ken will do using proper methods and models. Please also mention the name of the model you use.
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