You have been provided with the following information for ABC limited as at $31$st December $2023.$ The company

recorded revenues of Sh$.50$ Million and the profit margin was $25\%.$ Capital expenditure for the period was Sh$.2$ Million

and depreciation value was Sh$.1$ Million. Working capital investment for the period equal to $5\%$ of revenues level in

that year. The firm expects Revenues, Net Income, Interest expense, Capital Expenditure, Investment in Working Capital

and Depreciation to grow at an annual rate of $20\%$ each year for $5$ years. After the five year growth period, growth in

Revenues, Net Income, Depreciation Interest expense, Investment in Working Capital will decline to stable $3\%$ each year

into the foreseeable future and Capital expenditure and Depreciation will offset each other. ABC limited has $2$ million

of ordinary shares outstanding and $14\%$ interest bearing long term debt whose par value is Sh$.4$ Million. The average

cost of capital for t$.$ he company has been estimated to be $18\%$ during the high growth stage and $12\%$ during the steady

state. Calculate the value of the company and its equity using the Free Cash Flow to Equity Model $($FCF$)$

A bond today is selling for $ $900.$ The Bond has a face Value of $ $1,000$ and matures in five years time. The bond has a coupon interest rate of $10\%$ and it pays interest on a semi$-$annual Basis.

What is its yield to Maturity: