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Use the selected financial information on Namib Ltd to answer question 22. ...
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Use the selected financial information on Namib Ltd to answer question 22.
Selected financial data on Namib Ltd.
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Market value
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Required return
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Debt
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R30 000 million
|
9%
|
Common shares
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R50 000 million
|
12%
|
Preferred shares
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R20 000 million
|
15%
|
| ||
FCFF, most recent year
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R2 100 million
|
|
Tax rate
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30%
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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.