Sora Industries has 67 million outstandingshares, $129 million indebt, $42 million incash, and the following projected free cash flow for the next four years see the table below :

a. SupposeSora's revenue and free cash flow are expected to grow at a 3.4% rate beyond year 4. IfSora's weighted average cost of capital is 12.0%, what is the value ofSora's stock based on thisinformation?

The stock price for this case is $................. (Round to two decimalplaces.)

b.Sora's cost of goods sold was assumed to be67% of sales. If its cost of goods sold is actually70% ofsales, how would the estimate of thestock's valuechange?

The stock price for thiscase, when COGSincreases, is $............... (Round to two decimalplaces.)

c. Let's return to the assumptions of part (a) and suppose Sora can maintain its cost of goods sold at67% of sales.However, now suppose Sora reduces itsselling, general, and administrative expenses from20% of sales to16% of sales. What stock price would you estimatenow? (Assume no otherexpenses, excepttaxes, areaffected.)

The stock price for thiscase, when selling andSG&A costsdecrease, is $.............(Round to two decimalplaces.)

d. d. Sora's net working capital needs were estimated to be18% of sales(which is their current level in year0). If Sora can reduce this requirement to12% of sales starting in year1, but all other assumptions remain as in part (a), what stock price do you estimate forSora? (Hint: This change will have the largest impact onSora's free cash flow in year1.)

The stock price for thiscase, when working capital needs arereduced, is $............... (Round to two decimalplaces.)