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 3.65% coupon rate. The company was taxed at the 21.5% rate. The company also had depreciation charges of JPY 635,000,000. Fixed capital investment was 85% of depreciation and working capital investment was 2.6% 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 4.5%. 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 2.6% of sales. During the high growth phase, the companys WACC is estimated to be 26.5% while the longer term WACC is calculated to be 15%. (5 pts for each subsection)

1-What is the FCFF to the firm in 2018?

2-What is the FCFF to the firm in 2019?

3-What is the value of the firm using DCF valuation?

4-What is the equity value of the firm assuming the initial debt value is at market value?