C – Correct: only valuing three years of forecast cash flows ignores the continuing value of the business, so the valuation is understated.

D – Correct: based on typical CIMA F3 treatment, the forecast FX path should reflect expected weakening of the foreign currency (often due to higher inflation), but the assistant’s rates instead imply a strengthening B$, so the FX forecasts are inconsistent.

E – Correct: the assistant has effectively valued the business (entity value) by discounting cash flows to all providers of finance. To arrive at equity value, the B$5m of debt should be deducted.

A is incorrect because multiplying by an exchange rate quoted as AS per B$ is the right approach. B is incorrect because cash flows to all investors are appropriately discounted at WACC, not at the cost of equity.