Sora Industries has 66 million outstanding shares, $130 million in debt, $58 million in cash, and the following projected free cash flow for the next four years

Earnings Forecast & FCF Forecast ($millions)	Year	0	1	2	3	4
Sales		433.0	468.0	516.0	547.0	574.3
Growth V. Prior Yr			8.1%	10.3%	6.0%	5.0%
COGS			(313.6)	(345.7)	(366.5)	(384.8)
Gross Profit			154.4	170.3	180.5	189.5
Selling, General & Admin.			(93.6)	(103.2)	(109.4)	(114.9)
Depreciation			(7.0)	(7.5)	(9.0)	(9.5)
EBIT			53.8	59.6	62.1	65.2
Less: Income Tax at 4%			(21.5)	(23.8)	(24.8)	(26.1)
Plus: Depreciation			7.0	7.5	9.0	9.5
Less: Capital Expenditures			(7.7)	(10.0)	(9.9)	(10.4)
Less: Increases in NWC			(6.3)	(8.6)	(5.6)	(4.9)
Free Cash Flow			25.3	24.6	30.8	33.3

A.) Suppose Sora's revenue and free cash flow are expected to grow at a 3.8% rate beyond year 4. If Sora's weighted average cost of capital is 12.0%, 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?

C.) Let's return to the assumptions of part (a) and suppose Sora can maintain its cost of goods sold at 67% of sales. However, now suppose Sora 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.)

D.) Sora's net working capital needs were estimated to be 18% of sales (which is their current level in year 0). If Sora can reduce this requirement to 12% of sales starting in year 1, but all other assumptions remain as in part (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.)