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Sora Industries has 61 million outstanding shares, $126 million in debt, $41 million in cash, and the following projected free cash flow for the next
Sora Industries has 61 million outstanding shares, $126 million in debt, $41 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 4.8% rate beyond year four. If Sora's weighted average cost of capital is 9.0%, 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? other expenses, except taxes, are affected.) 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 4.8% rate beyond year four. If Sora's weighted average cost of capital is 9.0%, 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.)
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