Company Fireball Ltd. was established on January 1, 2019, with an equity capital of $400 million. In 2019 the company generated a net income of $80 million and paid $20 million in dividends. An analyst estimates that it will continue to generate an annual net income of $80 million for the next three years. Assuming that the cost of equity of the company is 8% and that it will maintain the same dividend payout ratio,

4.1 Estimate the equity value of Fireball using the Abnormal Profit model assuming that after 2023 the company will not be able to generate abnormal profits.

4.2 Estimate the equity value of Fireball using the Dividend Discount Model assuming that after 2023 the company will grow its dividends at the rate of 2% per year.

4.3 Estimate the value of Firewall using discounted cash flow model, if you have the following forecasts in millions of euros of the companys profits and of its future investments in new plants and working capital.

	Year 1	Year 2	Year 3
EBIT	80	90	100
Depreciation	20	20	20
Working Capital	12	15	20
Investment	12	15	18

Note: Assume that working capital in Year 0 was 0 and the company's tax rate is 20%.

From year 4 onward, the companys free cash flow to firm will grow at 2% per year. Estimate the companys total enterprise and equity value, if Company Bs WACC is 7% and its net debt is 201 million.

4.4 What will be its implied value per share if Company B has 150 million shares outstanding?