Business, 16.04.2021 19:30, rheamorrell

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%. Required:
a. What is the Net Income for 2015?
b. What is the Free Cash Flow to the Firm for 2015?
c. What is the Value of the Firm (Assets)?
d. What is the stock price per share using the discounted FCFF valuation?
e. What is the Free Cash Flow to Equity for 2015?
f. What is the stock price per share using the discounted FCFE valuation?

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PINGHUA 2015 Income Statement Info Sales $ 11,300 Costs 5,500 Depreciation 1,000 Interest paid 200 T...