Adele Industries has 64 million outstanding shares, $124 million in debt, $60 million in cash and the following projected free cash flow for the next four years: Year 0 1 2 3 4 Earnings and FCF forecast ($ million) 1 Sales 433.0 467.7 516.0 547.0 574.3 2 Growth versus prior year 8.0% 10.3% 6.0% 5.0% 3 Cost of goods sold (313.4) (345.7) (366.5) (384.8) 4 Gross Profit 154.3 170.3 180.5 189.5 5 Selling, general & admin. (93.5) (103.2) (109.4) (114.9) 6 Depreciation (7.0) (7.5) (9.0) (9.5) 7 EBIT 53.8 59.6 62.1 65.2 8 Less income tax at 30% (16.1) (17.9) (18.6) (19.5) 9 Plus depreciation 7.0 7.5 9.0 9.5 a. Suppose Adele's revenue and free cash flow are expected to grow at a 4.6% rate beyond year four. If Sora's weighted average cost of capital is 14.0%, what is the value of Adele's shares based on this information? The share price for this case is $ (Round to two decimal places.) b. Adele'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 share's value change? The share price for this case, when COGS increases, is $ (Round to two decimal places.) c. Return to the assumptions of part a and suppose Adele can maintain its cost of goods sold at 67% of sales. However, the firm reduces its selling, general and administrative expenses from 20% of sales to 16% of sales. What share price would you estimate now? (Assume no other expenses, except taxes, are affected.) The share price for this case, when selling, general and administrative costs decrease, is $ (Round to two decimal places.) d. Adele's net working capital needs were estimated to be 18% of sales (their current level in year zero). If Adele can reduce this requirement to 12% of sales starting in year one, but all other assumptions are as in part a, what share price do you estimate for Adele? (Hint: This change will have the largest impact on Adele's free cash flow in year one.) The share price for this case, when working capital needs are reduced, is $ (Round to two decimal places.)