PINGHUA 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets $ 1,850 $ 2,100 Current liabilities $ 740 $ 860 Net fixed assets 7,850 9,120 Long-term debt 4,000 4,300 Equity 4,960 6,060 PINGHUA 2015 Income Statement Info Sales $ 11,300 Costs 5,500 Depreciation 1,000 Interest paid 200 The tax rate is 35%. Long term debt trades at 112% 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%.

9 What is the Net Income for 2015? $______

10 What is the Free Cash Flow to the Firm for 2015? $______

11 What is the Value of the Firm (Assets)? $______

12 What is the stock price per share using the discounted FCFF valuation? $______

13 What is the Free Cash Flow to Equity for 2015? $______

14 What is the stock price per share using the discounted FCFE valuation? $______