ABC Co. is a sportswear company that is expected to experience a high growth period from 2021 to 2022 before its growth rate stabilizes in 2023. The company's EBIT, capital expenditures, and depreciation will grow at 20% in the high growth period and 5% in the stable growth period. ABC Co. has 100 million outstanding shares. The financial statements of ABC Co. show that in 2020 their operating income was $300 million while their capital expenditure was $50 million and depreciation was $20 million. The non-cash working capital of ABC Co. is predicted to be 15% of the yearly operating income. ABC Co.'s book value of debt is $2 billion, and the book value of equity is $3 billion. The debt's market value is similar to the book value, while the equity's market value is $3.5 billion. Further information is provided in the table below:

a. Estimate the free cash flows of the firm (FCFF) for 2021 to 2023.

b. Estimate ABC Co.s cost of equity for 2021 to 2023.

c. Describe in your own words how historical and implied equity risk premiums are calculated.

Explain which one you think would be the best to use.

d. Estimate ABC Co.s cost of capital for 2021 to 2023.

e. Estimate the terminal value of ABC Co. in 2023.

f. Explain why the beta of ABC Co. is different in the stable growth phase and high growth phase.

g. Estimate the total firm value of ABC Co. today.

h. Estimate the value of the equity in ABC Co. and the value per share.

i. Explain how the valuation of shares in ABC Co. could have been completed using multiples.

Please show your equations and workings, a detailed answer will have Thumbs Up for sure.

Tax rate Levered beta Government bond yield Moody's Default spread Equity Risk Premium Cost of debt Today 30% 1.3 2% 1% 3% 8% 2021 30% 1.3 2% 1% 3% 8% 2022 30% 1.3 2% 1% 3% 8% 2023 30% 1.1 2% 1% 3% 8% Tax rate Levered beta Government bond yield Moody's Default spread Equity Risk Premium Cost of debt Today 30% 1.3 2% 1% 3% 8% 2021 30% 1.3 2% 1% 3% 8% 2022 30% 1.3 2% 1% 3% 8% 2023 30% 1.1 2% 1% 3% 8%