(b) MVd 2
Pre demerger WACC 1
New βe and ke Newimber Co 1
New WACC Newimber Co 1
Pre demerger βa 1
β Poynins Co 1
WACC Poynins Co 1
Discounted free cash flows Poynins Co Years 1 to 3 3
Discounted free cash flow Poynins Co Year 4 onwards 2
Discussion 2–3