Another question to be solved Thks:)

Strathclyde Ltd, a listed company, wants to estimate the value of its shares, using itsfuture free cash-flows, and compare this to its current quoted share price of $3.30 per share. The company has 100 million shares in issue. It estimates that its profits will grow annually for the next four years and then remain stable at the 2013 amount for the foreseeable future.Strathclyde Ltd’s most recent net profit for the year to 31 March 2012 is $23.0m, which was calculated after taking into account depreciation and provisions of $2.2m and finance costs (interest payable) of $1.1m, on non-current liabilities totalling $110m. It is expected that future net profits will be as follows:
Year to 30 November 2013 2014 2015 2016
$m $m $m $m
27.6 33.1 39.7 47.7
It is estimated that depreciation and provisions will increase by $0.5m per year until 2016 and then remain constant, but the finance costs will not change in the future. Historically, Strathclyde Ltd has found that its net profit margin has been around 22% of sales revenue and it is expected that this will not change significantly in the future.Strathclyde Ltd has found that it would need to invest $0.10 in additional working capital and $0.08 in additional non-current assets for every $1 increase in sales revenue.
You can assume a cost of capital of 10%. Ignore taxation and show workings in $millions ($m) to one decimal place.
Required:
(a) Based on the information provided above, estimate the value of Strathclyde Ltd’s share, clearly explaining any assumptions made. (8 marks)