You would like to value the stock of company XYZ. XYZ has 10 million shares outstanding. In

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You would like to value the stock of company XYZ. XYZ has 10 million shares outstanding. In addition to equity, the company also has 180,000 bonds. Each bond has a face value of £1,000 and trades at a price of £959. The cost of debt is 7%. The target capital structure is 25% debt and 75% equity. You have the following information on XYZ for the year 2020:

(1) Sales are £500 million

(2) Cost of goods sold (COGS) excluding depreciation is 50% of sales

(3) Depreciation and amortization is £50 million

(4) Capital expenditure is £80 million

(5) Networking capital in December 2019 is equal to £250 million and net working capital in December 2020 is equal to £300 million

(6) Total unlevered free cash flows are projected to grow at 10%, 7%, 4% rate in 2021, 2022, and 2023, respectively. Then the growth rate will remain flat at 3.5% per year forever.

Assume that the corporate tax rate is 40%. Assume also that CAMP holds for equity capital, the risk-free interest rate is 4%, and the expected market return is 11%. What is the free cash flow of XYZ in 2020, 2021, 2022, and 2023.