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Sora Industries has 61 million outstanding shares, $121 million in debt, $49 million in cash, and the following projected free cash flow for the next
Sora Industries has 61 million outstanding shares, $121 million in debt, $49 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 5.7% rate beyond year 4 . If Sora's weighted average cost of capital is 11%, what is the value of Sora's 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? Sora Industries has 61 million outstanding shares, $121 million in debt, $49 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 5.7% rate beyond year 4 . If Sora's weighted average cost of capital is 11%, what is the value of Sora's 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
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