solve a-d for me please!!

solve a-d for me please! thank you!

Homework: Hom... Question 5, P 10-8 Upda... > HW Score: 37.36%, 34 of 91 points O Points: 0 of 4 Part 1 of 4 Save 7.0 Year 0 1 2 4 Earnings and FCF Forecast (5 million) 1 Sales 433.0 468.0 516,0 547.0 5743 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0% 3 Cost of Goods Sold (313.6) (345.7) (356.5 (384.8) 4 Gross Profit 154.4 170.3 180.5 189.5 5 Seiling, General & Admin. (936) (1032) (1094) (1149) 6 Depreciation (70) (75) (9.0) (9.5) 7 EBIT 538 59.6 62.1 652 8 Less: Income Tax at 25% (13.5) (149) (15.5) (163) 9 Plus: Depreciation 7.5 9.0 9.5 10 Less: Capital Expenditures (7.7) (100) 19.9) (104) 11 Less: Increase in NWC (6.3) (8.6) (56) (4.9) 12 Free Cash Flow 33.4 33.6 40.1 43.1 a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.2% rate beyond year four. Il Sora's weighted average cost of capital is 110% 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 reduce its soling, general, and administrative expenses from 20% of sales to 16% of sales. What stock price would you estimate now? (Assume no other expenses, exceptes are affected) d. Sora's not 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 in (a) what stock price do you estimate for Sora? (Hint. This change will have the largest impact on Sow free cash flow in a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.2% rate beyond year four. If Sora's weighted average cost of capital is 110%, what is the Help me solve this View an example Get more help Cleara Click and Homework: Hom... Question 5, P 10-8 Upda... HW Score: 37.38%, 34 of 91 points Part 1 of 4 Sav Points: 0 of 4 Sora Industries has 69 million outstanding shares, 5123 million in debt, $57 million in cash, and the following projected free cash flow for the next four years: Year 0 1 2 3 Earnings and FCF Forecast (5 million) 1 Sales 433.0 468.0 516,0 547.0 5743 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 (936) (1032) (109.4) (1149) 6 Depreciation (70) (7.5) (9.0) (9.5) 7 EBIT 59.6 62.1 652 8 Less Income Tax at 25% (13.5) (149) (155) (163) 9 Plus: Depreciation 7.0 75 9.0 9.5 10 Less: Capital Expenditures (77) (10,0) (9.9) (10.4) 11 Less: Increase in NWC (63) (8.6) (56) (4.9) 12 Free Cash Flow 33.4 33.6 40.1 43.1 a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.2% 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? 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 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 form 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 are affected a. Supporo Sora's revenue and free cash flow are expected to grow at a 5.2% rate beyond year four. If Soma's weighted average cost of capital in 11.0%, what is the 53.8 2 Help me solve this View an example Get more help Cleara Check answer a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.2% 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? b. Sora's cost of goods sold was assumed to be 67% of salen. If its cont of goods sold is actually 70% of sales, how would the estimate of the stock's van 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 estimato now? (Assume no other expenses, except are affected) d. Sora's not working capital needs were estimated to be 18% of sales (their current level in your zero). If 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 Sofron cash flow in year 1)