8. Sora Industries has 60 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years: 1 Year 0 1 2 3 4 2 Earnings and FCF Forecast ($ million) 3 Sales 433.0 468.0 516.0 547.0 574.3 4 Growth Versus Prior Year 8.1% 10.3% 6.0% 5.0% 5 Cost of Goods Sold (313.6) (345.7) (366.5) (384.8) 6 Gross Profit 154.4 170.3 180.5 189.5 7 Selling, General, and Administrative (93.6) (103.2) (109.4) (114.9) 8 Depreciation (7.0) (7.5) (9.0) (9.5) 9 EBIT 53.8 59.6 62.1 65.2 10 Less: Income Tax at 25% (13.5) (14.9) (15.5) (16.13) 11 Plus: Depreciation 7.0 7.5 9.0 9.5 12 Less: Capital Expenditures (7.7) (10.0) (9.9) (10.4) 13 Less: Increase in NWC (6.3) (8.6) (5.6) (4.9) 14 Free Cash Flow 33.4 33.5 40.1 43.1 a. Suppose Sora's revenues and free cash flow are expected to grow at a 5% rate beyond year 4. If Sora's weighted average cost of capital is 10%, what is the value of Sora stock based on this information