Free

cash flow is the cash flow available to the company’s suppliers of capital

after … have been paid and the necessary … and … have been made.

Which one of the statements below most likely

represents the

Use the information below to answer question 27 and 28.

The present value of growth

opportunities (PVGO) for Saldana Ltd is … .

The fraction

of Saldana Ltd’s value that comes from its growth opportunities is … .

Use the information

below to answer question 25.

Caterpillar

Company (CTC) is a small mining company that specialises in extracting a

specific mining product that is exported to China. The company’s sales

and earnings are expected to grow at a rate of 28% for the next ten years. The

initial growth rate is expected to decline linearly over the decade, eventually

stabilising at the long-term industry growth rate of 4%. CTC has a cost of

equity of 16.4% and currently pays a regular annual dividend of R240 million.

Market

information

Calculate the estimated value per share of CTC using

the H-model.

Which of the

following statements is

Calculate

the sustainable growth rate of Protea Ltd.

Use the information below to answer question 23 and 24.

At the end of the current

financial year, Protea Ltd reported earnings per share (EPS) of R1.20 and sales

of R50 per share. The company has an asset turnover ratio of 2 and a

debt-to-equity ratio of 3.  Furthermore, it

paid dividends of R0.30 per share. Based on this information, t

Use the selected financial information on Namib

Ltd to answer question 22.

Selected financial data on

Namib Ltd.

Namib Ltd operates in the extraction and production of green

hydrogen. The firm also holds surplus marketable securities valued at R25

million, which are currently being retained for investment.

Calculate the value of the firm, given that FCFF is forecasted to grow at 3%

into perpetuity.

Use the following information to answer questions 19 and 21.

Ayanda Ltd has a return on equity (ROE) of 25% and an equity

risk premium of 5.8%. Its shares are currently trading at R41.50. The company

reported trailing 12-month earnings per share of R1.50 and paid dividends of

R0.90 per share.  The market-based

multiples are a price-to-earnings (P/E) of 29.4, a price-to-book (P/B) ratio

of 8.2, and a price-to-sales (P/S) of 2.7. 

The profit margin on sales of 10.5%. The current treasury bond rate of

4.5%, and Ayanda Ltd’s beta is 1.2.

Based

on your answer to