What is the change in net working capital for 2015? $_______

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Consider the following abbreviated financial statements for Xinhua:

XINGHUA
2014 and 2015 Partial Balance Sheets
Assets Liabilities and Owners’ Equity
2014 2015 2014 2015
  Current assets $ 924 $ 1,002 Current liabilities $ 370 $ 428
  Net fixed assets 3,917 4,556 Long-term debt 2,006 2,142
Equity 2,465 2,988
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? $_______

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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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