Question
Consider the following abbreviated financial statements for Jinghua: JINGHUA 2018 and 2019 Partial Balance Sheets Assets Liabilities and Owners Equity 2018 2019 2018 2019 Current
Consider the following abbreviated financial statements for Jinghua:
JINGHUA 2018 and 2019 Partial Balance Sheets | ||||||||||||||
Assets |
| Liabilities and Owners Equity |
| |||||||||||
|
| 2018 |
|
| 2019 |
|
|
|
| 2018 |
|
| 2019 |
|
Current assets | $ | 3,700 |
| $ | 4,200 |
|
| Current liabilities | $ | 1,480 |
| $ | 1,720 |
|
Net fixed assets |
| 15,700 |
|
| 18,240 |
|
| Long-term debt |
| 8,000 |
|
| 8,600 |
|
|
|
|
|
|
|
|
| Equity |
| 9,920 |
|
| 12,120 |
|
JINGHUA 2019 Income Statement Info | ||
Sales | $ | 22,600 |
Costs |
| 11,000 |
Depreciation |
| 2,000 |
Interest paid |
| 400 |
The tax rate is 35%. Long term debt trades at 125% of par. The firm has 500 shares outstanding. Free Cash Flow to the Firm and the Free Cash Flow to Equity are both expected to grow at 2% forever. The weighted average cost of capital is 16%. The cost of equity is 24%.
What is the Net Income for 2019? $______
What is the Free Cash Flow to the Firm for 2019? $______
What is the Value of the Firm (Assets)? $______
accurate to minimum 2 decimals
What is the stock price per share using the discounted FCFF valuation? $______
What is the Free Cash Flow to Equity for 2019? $______
What is the stock price per share using the discounted FCFE valuation? $______
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