A firm has $500 million in debt. The weighted average cost of capital is 10% pa, after tax. Assuming that from 2021 the cash flows will be constant in perpetuity, calculate the total value of the firm and the value of the firm's equity using the Free Cash Flow methodology. All figures are in $ millions.

2018 2019 2020 2021

Actual Forecast Forecast Perpetuity

Sales 650 670 680 710

Variable Cost(320) (330)(340) (350)

Fixed Cost (115) (118) (111) (128)

EBDIT 215 222 229 232

Depreciation (50) (51) (52)(54)

EBIT 165 171 177 178

Tax 49.5 51.3 53.1 53.4

EBIAT115.5119.7 123.9 124.6

Change in Working Capital 30 15 15 10

Capital Expenditure 20 2010 5