Stephen A. Schwarzman, CEO of Blackstone Group is considering acquiring an electric vehicle startup Lucid Motors. Tesla Inc., a comparable firm to Lucid Motors, has an unlevered cost of capital of 9.5%. Lucid Motors' free cash flows and interest expenses from 2021 to 2023 are projected to be

    2021               2022           2023

FCF 1 million 1.2 million 1.4 million

Interest Expense 0.5 million 0.5 million 0.5 million

Starting from 2024, Lucid motors' free cash flow will increase at a rate of 5% per year,and it will maintain a debt-value ratio of 0.5 from 2024. Lucid Motors' FCF in 2024 will be $2 million. Assume corporate tax rate is 20%, and interest rate on Lucid motors' debt is 5%.

a. What is Lucid Motors' levered value VL in 2023?

b. What is Lucid Motors' levered value VL in 2020?

c. What is Lucid Motors' value of equity in 2020?