Sora Industries has 60 million outstandingshares, $ 128 million indebt, $ 57 million incash, and the following projected free cash flow for the next fouryears:

Year 4 Earnings and FOF Forecast ( 8 million ) Sales 4330 4680 5160 547 0 574.3 2 Growth ys . Prior Year 8 19 6 0. 39 6 60 9 / 6 50 % 3 Cost of Goods Sold (313 . 6 ) ( 345 .7 ) ( 356.5 ) (394 8 ) 4 Gross Profit 154.4 70.3 180.5 189.5 5 Selling General & Admin (93 . 6 ) ( 1032 ) ( 109 .4 ) ( 1 4.9) 6 Depreciation (7.0) (7.5 ) (90) (9.5) 7 EBIT 53 8 59.6 621 65.2 8 Less : Income Tax at 409 ( 21. 5 ) ( 23.8 ) ( 24.8 ) ( 26.1 ) 9 Plus : Depreciation TO 75 9.0 9.5 Less : Capital Expenditures ( 7.7 ) ( 10.0) (9.9 ) ( 10.4 ) it Less : Increase in NWO (6.3 ) ( 8. 6 ) (5.6 ) ( 4.9) 2 Free Cash Flow But 24 . 6 308 2 7