(f) Below information extracted from Gillette for dividend growth model measurement. Partial balance sheet for Gillette Inredeemable debentures @ 8% $15 Billion Capital Share @ $1 $35 Billion The risk-free rate is 5% and the market rate at 9%, P&G equity beta 1.5 and the corporate tax rate at 28%. Based on P&G projection, the annual cash flow will be increased on the next few years as below; Year Cash Flow before interest but after tax $ in billions 2005 11 2006 14 2007 9 after 3rd year will projection continuous growth thereafter. 2008 10 Required: Compute and comment on the estimate purchase value for P&G by using, (i) Equity value (15 marks) (in) Weightage average cost of capital (WACC) (15 marks) (iii) Outline the THREE (3) main limitations form the above measurement. (9 marks) (iv) Justify the impact of technology changes towards P&G corporation. (6 marks) [Total : 100 marks]