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The capital structure of ABC Limited as of December $31,2022,$ is as follows:

The current market price for the preferred stock is $$56$ for each share. The current market price for the equity share is $$286$ each.

The dividend expected in one year's time for the preferred share is $$4$ per share. The equity shares are expected to pay a dividend of $$14$ per share in one year's time, and the dividend is expected to grow at $13\%$ per year. The cost of debt before tax is $11\%,$ as per the capital structure above. The tax rate is $40\%.$The flotation cost for a new preferred stock is $$4\mathrm{.}00.$ The flotation cost for new common equity is $$28\mathrm{.}00.$ Not included in the capital structure disclosed above, is the issuance of a new bond by ABC Limited on December $31,2022,$ with a $9\%$ coupon rate. The company pays the bond's interest semi$-$annually. The maturity date of the bonds will be in $10$ years' time. The face value of the bonds is $$300,000,$ and the yield to maturity is $8\%.$

Required:

i$)$ Compute the intrinsic value of the new bond.

ii$)$ Assuming ABC Limited intends to maintain its existing capital structure calculate the minimum expected return$/$weighted average cost of capital.

iii$)$ Explain financial gearing and operational gearing and outline the impact of high levels of gearing on businesses.

iv$)$ Provide the major difference between Islamic finance and other conventional finance.