Please do answer all three parts of this question
Thank you
This year, FCF Inc. has earnings before interest and taxes of $10,300,000, depreciation expenses of $1,300,000, capital expenditures of $1,400,000, and has increased its net working capital by $450,000. If its tax rate is 25%, what is its free cash flow? The company's free cash flow is $ (Round to two decimal places.) Portage Bay Enterprises has $4 million in excess cash, no debt, and is expected to have free cash flow of $11 million next year. Its FCF is then expected to grow at a rate of 6% per year forever. If Portage Bay's equity cost of capital is 13% and it has 5 million shares outstanding, what should be the price of Portage Bay stock? The price of Portage Bay's stock is $ per share. (Round to the nearest cent.) Sora Industries has 63 million outstanding shares, $121 million in debt, $54 million in cash, and the following projected free cash flow for the next four years: Year 0 1 2 3 4 Earnings and FCF Forecast ($ million) 1 Sales 433.0 468.0 516.0 547.0 574.3 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0% 3 Cost of Goods Sold (313.6) (345.7) (366.5) (384.8) 4 Gross Profit 154.4 170.3 180.5 189.5 5 Selling, General, & Admin. (93.6) (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 40% (21.5) (23.8) (24.8) (26.1) 9 Plus: Depreciation 70 75 90 9.5 a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.2% rate beyond year four. If Sora's weighted average cost of capital is 11.0%, what is the value of Sora stock based on this information? The stock price for this case is $. (Round to the nearest cent.) This year, FCF Inc. has earnings before interest and taxes of $10,300,000, depreciation expenses of $1,300,000, capital expenditures of $1,400,000, and has increased its net working capital by $450,000. If its tax rate is 25%, what is its free cash flow? The company's free cash flow is $ (Round to two decimal places.) Portage Bay Enterprises has $4 million in excess cash, no debt, and is expected to have free cash flow of $11 million next year. Its FCF is then expected to grow at a rate of 6% per year forever. If Portage Bay's equity cost of capital is 13% and it has 5 million shares outstanding, what should be the price of Portage Bay stock? The price of Portage Bay's stock is $ per share. (Round to the nearest cent.) Sora Industries has 63 million outstanding shares, $121 million in debt, $54 million in cash, and the following projected free cash flow for the next four years: Year 0 1 2 3 4 Earnings and FCF Forecast ($ million) 1 Sales 433.0 468.0 516.0 547.0 574.3 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0% 3 Cost of Goods Sold (313.6) (345.7) (366.5) (384.8) 4 Gross Profit 154.4 170.3 180.5 189.5 5 Selling, General, & Admin. (93.6) (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 40% (21.5) (23.8) (24.8) (26.1) 9 Plus: Depreciation 70 75 90 9.5 a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.2% rate beyond year four. If Sora's weighted average cost of capital is 11.0%, what is the value of Sora stock based on this information? The stock price for this case is $. (Round to the nearest cent.)
