Use the following information to answer questions $9-14$

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 $24\%.$