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Sora Industries has 60 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next
Sora Industries has 60 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years: 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? orice would you estimate now? (Assume no other expenses, except taxes, are affected.) rou estimate for Sora? (Hint: This change will have the largest impact on Sora's free cash flow in year 1.) Data table cost of capital is 10.0%, what is the value of Sora stock based on this information? timate of the stock's value change? Sora Industries has 60 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years: 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? orice would you estimate now? (Assume no other expenses, except taxes, are affected.) rou estimate for Sora? (Hint: This change will have the largest impact on Sora's free cash flow in year 1.) Data table cost of capital is 10.0%, what is the value of Sora stock based on this information? timate of the stock's value change
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