Sora Industries has $67$ million outstanding shares, $$122$ million in debt, $$44$ million in cash, and the following projected free cash flow for the next four years:

a$.$ Suppose Sora's revenue and free cash flow are expected to grow at a $3\mathrm{.}3\%$ rate beyond year four. If Sora's weighted average cost of capital is $14\mathrm{.}0\%,$ 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 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 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$).$ 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 Sora's free cash flow in year $1.)$

a$.$ Suppose Sora's revenue and free cash flow are expected to grow at a $3\mathrm{.}3\%$ rate beyond year four. If Sora's weighted average cost of capital is $14\mathrm{.}0\%,$ what is the value of Sora stock based on this information?

The stock price for this case is $

$($Round to the nearest cent.$)$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[1,$Year,$0,1,2,3,4],[2,$Earnings and FCF Forecast $($$ million$),,,,,],[3,$Sales,$433\mathrm{.}00,468\mathrm{.}00,516\mathrm{.}00,547\mathrm{.}00,574\mathrm{.}30],[4,$Growth Versus Prior Year,,$8\mathrm{.}1\%,10\mathrm{.}3\%,6\mathrm{.}0\%,5\mathrm{.}0\%$