Sora Industries has 66 million outstanding shares, $121 million in debt, $59 million in cash, and the following projected free cash flow for the next four years:

A 1 Year 0 l 2 3 2 Earnings and PCP Forecast ($ million) 3 Sales 433 468 516 547 4 Growth vs. Prior Year 8.08% 10.26% 6.01% 5 Cost of Goods Sold -313.6 -345.7 -366.5 6 Gross Prot 154.4 170.3 180.5 7 Selling, General, & Admin. -93.6 -103 .2 -109.4 8 Depreciation -7 -7.5 -9 9 EBIT 53.8 59.6 62.1 10 Less: Income Tax at 40% -21.5 -23.8 -24.8 11 Plus: Depreciation 7 7.5 9 12 Less: Capital Expenditures -7.7 -10 -9.9 13 Less: Increase in NWC -6.3 -8.6 -5.6 14 Free Cash Flow 25.3 24.7 30.8 #0 574.3 4.99% -384.8 189.5 -1 14.9 -9.5 65.1 -26.0 9.5 -10.4 -4.9 33.3