QUESTION NO. 46 MULTIRORUM LIT will fall and stabiles SUM LTD is expected to grow at a higher rate for four years, thereafter the growth rate stabiles at a lower level. The following information is available ENT Base year (year = 0) information evenes Rs. 1,500 lakh Rs 250 lakh Capital Expenditure Rs 175 lakh Depreciation Rs 125 lakh Working capital as a of revenues 25% Corporate tax rate (for all time) 30% Paid up equity capital (Rs. 10 par) Rs 200 lakh Market value of debt Rs. 600 lakh Inputs for the High Growth period Length of high growth phase Growth rate in revenues depreciation, EBIT and capital expenditure Working capital as a percent of revenues Cost of debt (post-tax) Debt-equity ratio Cost of equity Inputs for the stable period Expected Growth rate in revenues and EBIT Working capital as a % of revenues Cost of debt (post tax) Debt-equity ratio Cost of equity 4 years 20% 9.10% 18.90% Requirement: What is the value of multiforum Ltd.in term of forecasted free cash flows? b) Calculate the value of shareholders