ChaCo Bud is considering making a bid for Butler Bhd, a rival company. The following information should be used to value Butler Bhd. statement of profit or loss for the most recent accounting period: RM in millions Revenue 285.1 Cost of sales -120.9 Gross profit 164.2 Operating expenses (including depreciation of RM12.3 million) -66.9 Profit from operations 97.3 Finance costs -10.0 Profit before tax 87.3 Taxation -21.6 Profit after tax 65.7 Other information: selling prices are expected to rise at 3% per year for the next 3 years and then stay constant thereafter. sales volumes are expected to rise at 5% per year for the next 3 years and then stay constant thereafter. assume that cost of sales is a completely variable cost, and that other operating expenses (including depreciation) are expected to stay constant. Butler Bud invested RM15 million in non-current assets and RM 2 million in working capital last year. These annual amounts are expected to stay constant in future. Butler Bud's financing costs are expected to stay constant each year in the future. The marginal rate of tax is 28%, payable in the year in which the liability arises. assume that book depreciation equals tax depreciation. . Butler Bud has 500 million shares in issue. The WACC of Butler Bud is 9% and its cost of equity is 12%. Required: Calculate the value of the equity in Butler Bhd by forecasting future free cash flows to equity and discounting them to present value using cost of equity. (Total 40 marks)