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Sora Industries has 70 million outstanding shares, $123 million in debt, $51 million in cash, and the following projected free cash flow for the next
Sora Industries has 70 million outstanding shares, $123 million in debt, $51 million in cash, and the following projected free cash flow for the next four years. Click the icon to view the projected free cash flows. Complete parts a through d. a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.8% rate beyond year four. If Sora's WACC is 9.0%, what is the value of Sora stock based on this information? The stock price for this case is $(Round to the nearest cent.) Projected free cash flows 0 1 2 3 4 433.0 Year Earnings and FCF Forecast ($ million) 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General, & Admin. 6 Depreciation 7 EBIT 8 Less: Income Tax at 40% 9 Plus: Depreciation 10 Less: Capital Expenditures 11 Less: Increase in NWC 12 Free Cash Flow 468.0 8.1% (313.6) 154.4 (93.6) (7.0) 53.8 (21.5) 7.0 (7.7) (6.3) 25.3 516.0 10.3% (345.7) 170.3 (103.2) (7.5) 59.6 (23.8) 7.5 (10.0) (8.6) 24.6 547.0 6.0% (366.5) 180.5 (109.4) (9.0) 62.1 (24.8) 9.0 (9.9) (5.6) 30.8 574.3 5.0% (384.8) 189.5 (114.9) (9.5) 65.2 (26.1) 9.5 (10.4) (4.9) 33.3 Print Done
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