1. At the beginning of its fiscal year 2020, an analyst made the following forecast for ABC, Inc. (in millions of dollars):

	2020	2021	2022	2023
Cash flow from operation	$1,225	$4,320	$2,985	$3,830
Cash investment	695	930	365	990

ABC did not have any short-term and long-term debt at the end of 2020. Assume that free cash flow will grow at 3 percent per year in 2024 and 2025, after that this will grow at 2 percent per year. ABC had 250 million shares outstanding at the end of 2020, trading at $130.65 per share. Using a required return of 10 percent, calculate the following for GM at the beginning of 2020:

1. The enterprise value. [6 marks]
2. Equity value. [1 marks]
3. Equity value per share. [2 marks]
4. Based on your estimate, should investors buy the share of this company? Justify your choice. [3 marks]