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Sora Industries has 1 0 million outstanding shares, $ 2 0 0 million in debt, $ 1 0 million in cash and reported Sales of

Sora Industries has 10 million outstanding shares, $200 million in debt, $10 million in cash and reported Sales of $500 million during last year. In the next three years, assume (a) volume of Sales is growing 10% from the previous year's volume, (b) Cost of Goods Sold is 75% of Sales, (c) Selling, General and Administrative expense is 10% of Sales, (d) marginal corporate Income Tax is at 20%,(e) Net Working Capital is 10% of Sales, (f) Depreciation is $10 million a year and Capital Expenditures is $15 million a year. Suppose Sora's revenue and free cash flow are expected to grow at a 5% rate beyond year 3. If Sora's weighted average cost of capital (W ACC) is 10%, what is the value of Sora's stock based on thisinformation?

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