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Use the following information to answer questions 1 - 8 Consider the following abbreviated financial statements for Xinghua: XINGHUA 2 0 1 4 and 2

Use the following information to answer questions 1-8 Consider the following abbreviated financial statements for Xinghua: XINGHUA 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners Equity 2014201520142015 Current assets $ 924 $ 1,002 Current liabilities $ 370 $ 428 Net fixed assets 3,9174,556 Long-term debt 2,0062,142 Equity 2,4652,988 XINGHUA 2015 Income Statement Sales $11,295 Costs 5,535 Depreciation 1,020 Interest paid 180 The tax rate is 35%. Long term debt trades at 128% 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%.1. What is the change in net working capital for 2015? $_______2. What is the change in gross fixed assets, i.e. capital expenditures, for 2015? $______3. What is the Net Income for 2015? $______4. What is the Free Cash Flow to the Firm for 2015? $_______5. What is the Value of the Firm (Assets)? $______6. What is the stock price per share using the discounted FCFF valuation? $______7. What is the Free Cash Flow to Equity for 2015? $______8. What is the stock price per share using the discounted FCFE valuation?

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