please answer a-d

numbers have changed, please use the following

complete HW Score: 80 26%, 15 25 of 19 ps P 10-8 (similar to) Question Sera Industries has 6 million standing shares $130 million in del, 53 lion in cash, and the following projected the cash flow of the four years Suppose fora's revenue and tranh low are expected to atte beyond year for fora's weighed value of Serock based on this information? b. Sor's cost of goods sold was assumed to be 67% of sales is cool of goods sold is actually roof sales how we are of these c. Return to the suptions of part and se Sora can maintains cost of goods sold of However, osseling real and respons from 20% of salt 16of sales What price would you do? d. So's met woning capital needs were stimated to be 10% of their content level in year Sora candacement 125 ting in year 1, but at the emptions are as in what lock price do you the lo Sora? The change will have the largest impact on Sorsfee cash fow in your !) Super Son's revenue and free cash flow speed to grow 37 te beyond year for Sora's wedge cost of capital is 13% what is the value of Sora stocked woman? The stock price for this case in Round is the nearest cant) Sora Industries has 70 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years! a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.6% rate beyond year four. If Sora's weighted average cost of capital is 14.0%, what is the value of Sora 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? c. Return to the assumptions of part (a) and suppose Sora 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 stock price would you estimate now? (Assume no other expenses, except taxes, are affected.) d. Sora's net working capital needs were estimated to be 18% of sales (their current level in year zero). If Sora can reduce this requirement to 12% of sales starting in year 1, but all other assumptions are as lo(a). what stock price do you estimate for Sora? (Hint: This change will 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 5.6% rate beyond year four. If Sora's weighted average cost of capital is 14.0%, what is the value of Sora stock based on this information The stock price for this case is $(Round to the nearest cent.) 6 of 10 (10 complete) HWS umed to be 67% of sales. If its cost of goods sold is actually 70% of sales how would the estimate of the stock's value.ch i Data Table 0 2 3 4 433.0 Year Earnings and FCF Forecast ($ million) 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General, & Admin. 6 Depreciation 7 EBIT 8 Less: Income Tax at 25% 9 Plus: Depreciation 10 Less: Capital Expenditures 11 Less: Increase in NWC 468.0 8.1% (313.6) 154.4 (93.6) (7.0) 53.8 (13.5) 7.0 (7.7) (6.3) 516.0 10.3% (345.7) 170.3 (103.2) (7.5) 59.6 (14.9) 7.5 (10.0) (86) 547.0 6.0% (366.5) 180.5 (109.4) (9.0) 62.1 (15.5) 9.0 (9.9) (5.6) 574.3 5.0% (384.8) 189.5 (114.9) (9.5) 65.2 (16.3) 9.5 (10.4) (4.9) Print Done LUI 1 Data Table iial sy eds w stock free cl 433.0 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General, & Admin. 6 Depreciation 7 EBIT 8 Less: Income Tax at 25% 9 Plus: Depreciation 10 Less: Capital Expenditures 11 Less: Increase in NWC 12 Free Cash Flow 468.0 8.1% (313.6) 154.4 (93.6) (7.0) 53.8 (13.5) 7.0 (7.7) (6.3) 33.4 516.0 10.3% (345.7) 170.3 (103.2) (7.5) 59.6 (14.9) 7.5 (10.0) (8.6) 33.6 547.0 6.0% (366.5) 180.5 (109.4) (9.0) 62.1 (15.5) 9.0 (9.9) (5.6) 40.1 574.3 5.0% (384.8) 189.5 (114.9) (9.5) 65.2 (16.3) 9.5 (10.4) (4.9) 43.1 wer bo Print Done 111 complete HW Score: 80 26%, 15 25 of 19 ps P 10-8 (similar to) Question Sera Industries has 6 million standing shares $130 million in del, 53 lion in cash, and the following projected the cash flow of the four years Suppose fora's revenue and tranh low are expected to atte beyond year for fora's weighed value of Serock based on this information? b. Sor's cost of goods sold was assumed to be 67% of sales is cool of goods sold is actually roof sales how we are of these c. Return to the suptions of part and se Sora can maintains cost of goods sold of However, osseling real and respons from 20% of salt 16of sales What price would you do? d. So's met woning capital needs were stimated to be 10% of their content level in year Sora candacement 125 ting in year 1, but at the emptions are as in what lock price do you the lo Sora? The change will have the largest impact on Sorsfee cash fow in your !) Super Son's revenue and free cash flow speed to grow 37 te beyond year for Sora's wedge cost of capital is 13% what is the value of Sora stocked woman? The stock price for this case in Round is the nearest cant) Sora Industries has 70 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years! a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.6% rate beyond year four. If Sora's weighted average cost of capital is 14.0%, what is the value of Sora 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? c. Return to the assumptions of part (a) and suppose Sora 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 stock price would you estimate now? (Assume no other expenses, except taxes, are affected.) d. Sora's net working capital needs were estimated to be 18% of sales (their current level in year zero). If Sora can reduce this requirement to 12% of sales starting in year 1, but all other assumptions are as lo(a). what stock price do you estimate for Sora? (Hint: This change will 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 5.6% rate beyond year four. If Sora's weighted average cost of capital is 14.0%, what is the value of Sora stock based on this information The stock price for this case is $(Round to the nearest cent.) 6 of 10 (10 complete) HWS umed to be 67% of sales. If its cost of goods sold is actually 70% of sales how would the estimate of the stock's value.ch i Data Table 0 2 3 4 433.0 Year Earnings and FCF Forecast ($ million) 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General, & Admin. 6 Depreciation 7 EBIT 8 Less: Income Tax at 25% 9 Plus: Depreciation 10 Less: Capital Expenditures 11 Less: Increase in NWC 468.0 8.1% (313.6) 154.4 (93.6) (7.0) 53.8 (13.5) 7.0 (7.7) (6.3) 516.0 10.3% (345.7) 170.3 (103.2) (7.5) 59.6 (14.9) 7.5 (10.0) (86) 547.0 6.0% (366.5) 180.5 (109.4) (9.0) 62.1 (15.5) 9.0 (9.9) (5.6) 574.3 5.0% (384.8) 189.5 (114.9) (9.5) 65.2 (16.3) 9.5 (10.4) (4.9) Print Done LUI 1 Data Table iial sy eds w stock free cl 433.0 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General, & Admin. 6 Depreciation 7 EBIT 8 Less: Income Tax at 25% 9 Plus: Depreciation 10 Less: Capital Expenditures 11 Less: Increase in NWC 12 Free Cash Flow 468.0 8.1% (313.6) 154.4 (93.6) (7.0) 53.8 (13.5) 7.0 (7.7) (6.3) 33.4 516.0 10.3% (345.7) 170.3 (103.2) (7.5) 59.6 (14.9) 7.5 (10.0) (8.6) 33.6 547.0 6.0% (366.5) 180.5 (109.4) (9.0) 62.1 (15.5) 9.0 (9.9) (5.6) 40.1 574.3 5.0% (384.8) 189.5 (114.9) (9.5) 65.2 (16.3) 9.5 (10.4) (4.9) 43.1 wer bo Print Done 111