Bay Ridge Industries has 50 million outstanding shares, $120 million in debt, $30 million in cash, and the following projected free cash flow for the next four years (in \$ millions): a. Suppose Bay Ridge's revenue and free cash flow are expected to grow at a 5% rate beyond year 4 . If its weighted average cost of capital is 12%, what is the value of Bay Ridge's stock based on this information? b. Bay Ridge'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? c. Let's return to the assumptions of part (a) and suppose Bay Ridge can maintain its cost of goods sold at 67% of sales. However, now suppose Bay Ridge reduces its operating expenses from 20% of sales to 16% of sales. What stock price would you estimate now? (Assume no other expenses, except taxes, are affected.) d. Bay Ridge's net working capital needs were estimated to be 18% of sales (which is their current level in year 0 ). If management can reduce this requirement to 12% of sales starting in year 1 , but all other assumptions remain as in part (a), what stock price do you estimate for Bay Ridge? Bay Ridge Industries has 50 million outstanding shares, $120 million in debt, $30 million in cash, and the following projected free cash flow for the next four years (in \$ millions): a. Suppose Bay Ridge's revenue and free cash flow are expected to grow at a 5% rate beyond year 4 . If its weighted average cost of capital is 12%, what is the value of Bay Ridge's stock based on this information? b. Bay Ridge'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? c. Let's return to the assumptions of part (a) and suppose Bay Ridge can maintain its cost of goods sold at 67% of sales. However, now suppose Bay Ridge reduces its operating expenses from 20% of sales to 16% of sales. What stock price would you estimate now? (Assume no other expenses, except taxes, are affected.) d. Bay Ridge's net working capital needs were estimated to be 18% of sales (which is their current level in year 0 ). If management can reduce this requirement to 12% of sales starting in year 1 , but all other assumptions remain as in part (a), what stock price do you estimate for Bay Ridge