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Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Sora Industries has 61 milion outstanding shares, $124 million

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Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Sora Industries has 61 milion outstanding shares, $124 million in dobt $55 million in cash, and the following projocted free cash flow for the next four yoars: a. Suppose Sora's revenue and free cash flow are oxpected to prow at a 5.9% rate beyond year four. If Sore's weighted awerage cost of capital is 9 . OW. what is the value of Sora stock based on this information? b. Sore'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 sitocks value change? c. Roturn to the bssumptions of part (a) and suppose Sora can maintain ts cost of goods sold at er W of sales. However, the frm reduces bs selling. general, and adeninstrative expenses from 20%. of sales to 16% of sales. What stock price would you estimate now? (Assume no other expenses, except laxes, are alfocted). assurnptions are as in (a), what stock price do you estimale for Sora? (Hint. This changen wil have the largest impact on Sorars free cash fow in year 1 )

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