The following is a presentation of re-organized financial statements of ABC Limited for the ecent period and five year projections. Figures in million Kenya shillings. ACTUAL PROJECTED 4 1 Non-Current Assets (NET 2 | Current-Assets 3 Current lfabilities 4 Revenues 400 480 576 691.2 829.44 995.328 50 60 72 864 10368 124.42 40 48 57.6 69.1282.94 99.53 600 720 864 1036.8 1244.16 i 1492.99 ngs Before Interesto Tax | 100| 120| 14 172.81 207.36 248.83 6|Depreciation and ammonizationj 50 60 72 86.4 103.68 124.42 Additional information (i) Applicable tax-rate is 30%. (i) It is expected that after year five (projection), all items except non-current assets and, depreciation and amortization will grow at an annual rate of 5% each year indefinitely. Investment on capital projects and non-cash charges will off-set each other (ii) Weighted average cost of capital during high growth stage and stable growth stages has been estimated as 12% and 6% respectively. Required (a) Compute growth rate for the high growth stage. (b) Compute free cash flow for projected years 1, 2,3, 4 and 5. (10 marks) (o) Compute the value of ABC Limited given the above information. Using free (5 marks) cash flow to the firm's model. (10 marks) (5 marks) Total: 30 marks (d) Compute the terminal value of ABC Limited