$2)$ Okamoto Industries has just published their financials for FY $2018.$ They generated JPY $85,450,000,000$ in sales and maintained their $35\%$ gross margin and $15\%$ net margin. During that year the company had debt outstanding of JPY $8,232,000,000$ with a $3\mathrm{.}65\%$ coupon rate. The company was taxed at the $21\mathrm{.}5\%$ rate. The company also had depreciation charges of JPY $635,000,000.$ Fixed capital investment was $85\%$ of depreciation and working capital investment was $2\mathrm{.}6\%$ of sales. The company believes that it can maintain high growth of sales at $18\%$ for the next five years where it will then fall to its long term growth rate of $4\mathrm{.}5\%.$ Both gross and net margin will decline by $1\%$ per year $($next year gross margin will be $34\%)$ until they reach their stable levels of $30\%$ and $10\%$ respectively. The company will pay down debt by $500,000,000$ for the next five years before reaching a sustainable debt level with the same coupon rate. Depreciation charge will decrease by $10\%$ per year for five years. Fixed capital investment will increase by $5\%$ relative to depreciation charge each year until it reaches $100\%$ of depreciation charges and remain at that level. Working capital will remain $2\mathrm{.}6\%$ of sales. During the high growth phase, the company$$s WACC is estimated to be $26\mathrm{.}5\%$ while the longer term WACC is calculated to be $15\%.(10$ pts$)$

a$.$ What is the FCFF to the firm in $2018?(3$ pts$)$

b$.$ What is the FCFF to the firm in $2019?(3$ pts$)$

c$.$ What is the value of the firm using DCF valuation? $(2$ pts$)$

d$.$ What is the equity value of the firm assuming the initial debt value is at market value? $(2$ pts$)$