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)

A) What is the FCFF to the firm in 2018?

B) What is the FCFF to the firm in 2019?

C) What is the value of the firm using DCF valuation?

D) What is the equity value of the firm assuming the initial debt value is at market value?