Question 14 Sora Industries has 61 million outstanding equity shares and the following projected financial information for the next four years. Tax rate is 40%. Sora's cost of capital is 10%. Year 2 3 4 Earnings Forecast ($millions) 1 Sales 468.00 516.00 546.96 574.31 3 Cost of Goods Sold 313.56 345.72 366.46 384.79 93.60 103.20 109.39 114.86 4 Selling, General & Admin. 5 Depreciation 10.00 10.50 12.00 12.45 6 Net Income 32.30 35.75 37.27 39.13 Capital Requirements ($millions) 7 Capital Expenditures 8 Increase in Net Working Capital 8.70 11.00 10.90 10.40 6.30 9.64 5.57 4.92 Sora's CFO wants to use P/E ratio to value the stock's terminal value in year 4. The CFO forecasts that the industry P/E ratio in year 4 is 10. Based on the forecasted P/E ratio, what is the firm value of Sora today (year 0)? $362.66 million $255.83 million $221.83 million $199.06 million