D Sora Industries has 62 million outstanding shares, $126 million in debt. $57 million in cash, and the following projected free cash flow for the next four years: Year 0 1 2 3 Earnings and FCF Forecast (8 million) 1 Sales 4330 468.0 516.0 547.0 574.3 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0% 3 Cost of Goods Sold (313,6) (3457) (3665) (3848) 4 Gross Profit 154.4 170.3 180.5 189.5 5 Selling, General, & Admin (93.6) (1032) (1094) (114.9) 6 Depreciation (7.0) (75) (9.0) (9.5) 7 EBIT 53.8 59.6 62.1 65.2 8 Less: Income Tax at 40% (21.5) (23.8) (24.8) (26.1) 156) 1491 9 Plus Depreciation 70 7.5 90 9.5 10 Loss Capital Expenditures (7.7) (10.01 (99) (104) 11 Less Increase in NWC 163) 86) 12 Free Cash Flow 253 246 30.8 333 a. Suppose Sora's revenue and free cash flow are expected to grow at a 3.15 rate beyond year four. If Sora's weighted average cost of capital is 120%, what is the value of Soras based on the Information b. Son's cost of goods sold was assumed to be 67% of sales, its cost of goods sold is actually 70% of sales, how would the estimate of the tools to change c. Return to the assumptions of part (a) and suppose Sora can maintains cost of goods sold at 67% of sales. However, the firm reduces is in general and expenses to 20% of to 10% of sales. What stock price would you estimate now? (Assume no other expenses, exceptes, are affected) d. Sor's not working capital needs were estimated to be 18% of sales (the current level in year zero) Sora can reduce this requirement to 125 of a starting in a 1. but other sumptions areas in (a) what stock price do you estimate for Sora? (Hint. This change wil have the largest impact on Sora's free cash flow in year 1) a. Suppose Sora's revenue and free cash flow are expected to grow at a 3.1% rate beyond year four, Sora's weighted average cost of capital 1205, va ofera stock based on this information? The stock price for this cases (Round to the nearest cent)