The following financial information was recently released for the Southern Agricultural Corporation (SAC), a South African agricultural conglomerate. The companys 2022 and 2021 annual financial reports are contained in Tables 1 and 2 below, along with important additional information:

Table 1: Southern Agricultural Corporation statement of financial position (R millions)

	2022	2021
Cash and equivalents	R149	R83
Accounts receivable	295	265
Inventory	275	285
Total current assets	R719	R633
Total fixed assets	3 909	3 856
Accounts payable	228	220
Notes payable	0	0
Total current liabilities	228	220
Long term debt	1 800	1 650
Total liabilities and shareholders equity	3 909	3 856
Number of shares outstanding (millions)	100	100

Additional information:

• Depreciation (2022): R483.
• The firm spent R250m on profitable projects in 2022.
• WACC: 15%
• Cost of equity of the firm: 10%
• Tax rate: 40%

Table 2: Southern Agricultural Corporation statement of comprehensive income

(R millions except for share data)

	2022	2021
Total revenues	R3 175	R3 075
EBIT	495	448
Interest expense	104	101
Net Income	235	208
Dividends per share	R0.80	R0.80

Use the information given to answer the following:

1.1. Calculate the Free Cash Flow to the Firm (FCFF) for the year

1.2. If it is assumed that the FCFF is expected to experience constant growth of 5% per year, what is the market value of the Southern Agricultural Corporation

1.3. You are told that the firms Free Cash Flow to Equity (FCFE) will continue to grow at a rate of 5% for the next 3 years, after which it will stabilize at a rate of 3%. Calculate the intrinsic value of each of Southern Agricultural Corporations shares.