Company A has recently made an announcement that it will privatize itself and distribute shares of the companys subsidiaries (Sub A and Sub B) along with HKD 12 per share. You want to determine if there is an arbitrage opportunity. You take a look at the companys financials from their most recent earnings release:

They forecast that next year, (2021) will generate HKD45,000,000,000 in revenue, which they are forecasting to grow over the following three years at 12% and then 4.5% onward. They believe that they will maintain a 75% gross margin and a 30% net margin indefinitely. The company also currently has HKD52,850,000,000 of debt outstanding with an average coupon rate of 1.4% that will begin to be paid down by HKD6,500,000,000 per year from 2022-2024 before reaching an equilibrium level. Depreciation charges consist of HKD750,000,000 and will decrease by 15% from 2021to 2024 before reaching a steady state. Fixed Costs will remain 100% equal to depreciation charges. Working Capital has consistently been maintained as 5.7% of revenue. The companys WACC is determined to be 7.5% in its high growth phase and 5.6% onward. The companys tax rate is 18%.

a. What is the FCFF for 2021? How about for 2025?

b. Using the DCF method, what is firm value of Company A?