Sora Industries has 66 million outstanding shares, $122 million in debt, $43 million in cash, and the following projected free cash flow for the next four years:

		Year	0	1	2	3	4
Earnings and FCF Forecast ($ million)
1	Sales		433	468	516	547	574.3
2	Growth vs. Prior Year			0.081	0.103	0.06	0.05
3	Cost of Goods Sold			(313.6)	(345.7)	(366.5)	(384.8)
4	Gross Profit			154.4	170.3	180.5	189.5
5	Selling, General, & Admin.			(93.6)	(103.2)	(109.4)	(114.9)
6	Depreciation			(7.0)	(7.5)	(9.0)	(9.5)
7	EBIT			53.8	59.6	62.1	65.2
8	Less: Income Tax at 25%			(13.5)	(14.9)	(15.5)	(16.3)
9	Plus: Depreciation			7	7.5	9	9.5
10	Less: Capital Expenditures			(7.7)	(10.0)	(9.9)	(10.4)
11	Less: Increase in NWC			(6.3)	(8.6)	(5.6)	(4.9)
12	Free Cash Flow			33.4	33.6	40.1	43.1

a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.3%rate beyond year four. If Sora's weighted average cost of capital is 13.0%,

what is the value of Sora stock based on this information?

The stock price for this case is $ . (Round to the nearest cent.)

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?

The stock price for this case, when COGS increases, is $ (Round to the nearest cent.)

c. Return to the assumptions of part (a) and suppose Sora can maintain its cost of goods sold at 67% of sales. However, the firm reduces its selling, general, and administrative expenses from 20% of sales to 16% of sales. What stock price would you estimate now? (Assume no other expenses, except taxes, are affected.)

The stock price for this case, when selling, general, and administrative costs decrease, is $ __(Round to the nearest cent.)

d. Sora's networking capital needs were estimated to be 18% of sales (their current level in year zero). If Sora can reduce this requirement to 12% of sales starting in year 1, but all other assumptions areas 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.)

The stock price for this case, when working capital needs are reduced, is $___(Round to the nearest cent.)