1. At the end of 2019 (t = 0) a firm has net debt with a market value of $420 million. You forecast the firms FCFF for 2020-2022 to be the following and that FCFF will grow at an annual rate of 4% after 2022. The firm has a stable capital structure: 80% equity with a beta of 1.15 and 20% debt with a cost of 12%. The risk-free rate is 1.5% and the market portfolio return is 9.2%. The corporate tax rate for this firm is 30%.

Year	2020 forecast	2021 forecast	2022 forecast
FCFF ($ millions)	1,750	1,972	2,080

b) What is the horizon value (continuing value) at the end of 2022 for all future FCFF starting from 2023?

c) What is the total firm value at the end of 2019 (t = 0)??

d) What is the total equity value at the end of 2019 (t = 0)?