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Thank you so much! Please help me solve the problem b, c, d. Sora Industries has 67 million outstanding shares, $127 million in debt, $47

Thank you so much! Please help me solve the problem b, c, d. image text in transcribed
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Sora Industries has 67 million outstanding shares, $127 million in debt, $47 million in cash, and the following projected free cash flow for the next four years : a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.9% rate beyond year 4. If Sora's weighted average cost of capital is 120%, 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.) a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.9% 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? The stock price for this case is $ 475 (Round to two decimal places.) 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 pnce for this case, when COGS increases, is $ (Round to two decimal places.) 433.0 23 333 on Year Earnings & FCF Forecast ($ million) Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold Gross Profit 58 Selling, General & Admin 6 Depreciation 7 EBIT 8 Less: Income tax at 40% 9 Plus Depreciation 10 Less: Capital Expenditures 11 Less: Increases in NWC 12 Free Cash Flow 468.0 8 .1% (313.6) 154. 4 (93.6) (7.0) 53.8 (21.5) 7.0 (77) (6.3) 25, 3 516.0 5470 10.3% 6.0% (345.7) (366.5) 170.3 180.5 (103.2) (109.4) (7.5) (9.0) 59. 6262.1 (23.8) (24.8) 7.5 9.0 (10.0) (9.9) (8.6) (5.6) 24.6 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 8 RESAS

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