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Sora Industries has 65 million outstanding shares, $124 million in debt, $50 million in cash, and the following projected free cash flow for the next
Sora Industries has 65 million outstanding shares, $124 million in debt, $50 million in cash, and the following projected free cash flow for the next four years: nformation? 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? of sales to 16% of sales. What stock price would you estimate now? (Assume no other expenses, except taxes, are affected.) 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.) Data table t of capital is 9.0%, what is the value of Sora stock based on this
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