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Please help with parts B,C, and D. Thank you! Sora Industries has 69 million outstanding shares, $128 million in debt, $54 million in cash, and

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Please help with parts B,C, and D. Thank you!

Sora Industries has 69 million outstanding shares, $128 million in debt, $54 million in cash, and the following projected free cash flow for the next four years: Year Earnings and FCF Forecast ($ million) 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General, & Admin 6 Depreciation T EBIT 8 Less: Income Tax at 40% 9 Plus: Depreciation 10 Less: Copital Expenditures 11 Less: Increase in NWC 12 Free Cash Flow 574.3 5.0% (313.6) (345.7) (356.5) (384.8) 189.5 (93.6) 103.2 109.4 1149) (9.5) 433.0 468.0 516.0547.0 6.0% 8.1% 10.3% 154.4 170.3 80.5 (7.0) 53.8 (7.5) 59.6 62.1 (21.5 (23.8) (24) 9.0 (7.7) (10.0) 6.3) 25.3 (10.4) (4.9 33.3 (9.9) 24.6 30.8 a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.1% 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? 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 he assumptions of part a and suppose Sora can main ain its cost of goods sold at 67% of sales. However, the firm reduces its selling general and administrative expenses rom 20% of sales to 16% o 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 lf Sora can reduce this requirement to 12% of sales starting in year 1, but all other assumptions are as in 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.)

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