A representative firm that has the same free cash flow growth as the GDP growth in Country X. Expect GDP (Firm Free Cash flow) growth = 5%, The equity required return =13%, The Free Cash flow in the year 2019 = $ 120 Million.

(a) What is the value of the firm's equity at the end of the year 2019?  

(b) Due to the pandemic outbreak, the economic condition in the first half of 2020 worsened and the analyst revises the forecast GDP growth rate, while it will remain at 5% in 2020, but from 2021 onwards it will be 2.8%. What is the expected equity value at the end of 2020, respectively? 

(c) What would be the expected total stock return if an investor buys at the end of 2019 and holds until the end of 2020? (Assuming the market reflects exactly the expectation.) 

(d) What would be the expected total stock return if an investor buys at the end of 2020 and holds until the end of 2021? (Assuming the market reflects exactly the expectation.) What can you infer from comparing the answer with part?