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a. Suppose Sora's revenue and free cash flow are expected to grow at a 5% rate beyond year 4 . If Sora's weighted average cost

image text in transcribed a. Suppose Sora's revenue 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's stock based on this information? b. Sora's cost of goods sold was assumed to be 67% of sales. If its cost of goods sold is actually 70% of sales, how would the estimate of the stock's value change? Assumed COGS/sales Actual COGS/sales

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