this is the question i have, for calculation part, Excel should be used to demonstrate the calculation steps.

QUESTION 1 2 The following information is available for Prospect plc. a start-up software company: . Cost of equity capital: 15% - Weighted average cost of capital: 13% c Number of shares outstanding: 300 million a Net nancial obligations: 320 million Year 2022 (m) Expected Cash Flow from 480 Operatlons mmmmm Required: i. When using a valuation methodology, such as discounted free cashflow, explain the rationale for valuing enterprise value, and then equity. rather than valuing equity directly. {Limit your answer to 120 words] [6 marks] ii. Estimate the share price of Prospect Plc assuming that the terminal value grows at 4% in scenario A or 2% in scenario B. In both scenarios you may assume that ROCE is 18%. State any other assumptions you make if needed. 1 5 marks] iii. Explain the relative merits of valuation methodologies based on abnormal earnings versus those based on discounted cashflows. (Limit your answer to 160 words.) [8 marks] iv. Respond to an asset manager who argues that discounted cashow are highly vulnerable to changes in the growth assumption and so are of very little use. If helpful refer to your workings in part 'i i' above. {Limit your answer to 200 words] [10 marks]