Question $(20$ marks$)$

Msunduzi Analytics is evaluating Naspers Inc using the FCFE valuation method. They have collected the following information:

$$ Naspers has net income of $250$ million, depreciation of $90$ million, capital expenditures of $170$ million and an increase in working capital of $40$ million.

$$ Naspers has financed $40\%$ of the capital expenditure and $40\%$ of the increase in working capital with debt financing.

$$ Interest expenses are currently $150$ million, whilst the current market value of Naspers$$s debt is $1800$million.

$$ The FCFE is expected to grow at a $20\%$ rate for the next $2$ years, thereafter, over the subsequent $3$ years; its growth should decline linearly, ultimately reaching a stable growth rate of $5\%.$

$$ The tax rate is $30\%.$

$$ Naspers is financed with $40\%$ debt and $60\%$ equity. The before$-$tax cost of debt is $9\%,$ and the before$-$tax cost of equity is $13\%.$

$$Naspers has $10$ million outstanding shares.

The current Free Cash Flow to the firm $($FCFF$)$ is equal to RAnswer $1$ Question $23$

million $($Round off your answer to the nearest whole number$).$

The current Free Cash Flow to Equity $($FCFE$)$ is equal to RAnswer $2$ Question $23$

million $($Round off your answer to the nearest whole number$).$

The FCFE in year $3$ is equal to RAnswer $3$ Question $23$

million $($Round off your answer to two decimal places$).$

The terminal value at the end of year $4$ is equal to RAnswer $4$ Question $23$

million $($Round off your answer to two decimal places$).$

The value of Naspers equity is equal to RAnswer $5$ Question $23$

million and the value per share is equal to RAnswer $6$ Question $23$

Round off all your answer to two decimal places.

$($Write your responses in millions as follows, if it is $100000000=100$ million, so you simply write $100)$