thanks for the help! ill make sure to like the post!

ora Industries has 65 million outstanding shares, $128 million in debt, $49 million in cash, and the following rojected free cash flow for the next four years: 3 4 2 1 0 433.0 Year Earnings and FCF Forecast ($ 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 a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.2% rate beyond year four. If Sora's weighted average cost of capital is 11.0%, what is the value of Sora 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. 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.) d. Sora's net working 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 are as 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.) Sora Industries has 62 million outstanding shares, $123 million in debt, $45 million in cash, and the following projected free cash flow for the next four years: 9.5 Year 0 1 2 3 4 Earnings and FCF Forecast ($ million) 433.0 468.0 1 Sales 516.0 547.0 574.3 8.1% 2 Growth vs. Prior Year 10.3% 6.0% 5.0% 3 Cost of Goods Sold (313.6) (345.7) (366.5) (384.8) 154.4 4 Gross Profit 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 7.0 7.5 9.0 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 43.1 a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.2% rate beyond year four. If Sora's weighted average cost of capital is 12.0%, what is the value of Sora 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. 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.) d. Sora's net working 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 are as 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.) 40.1 2 3 4 5 76.4 74.5 Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year FCF (5 million) 53.3 67.9 83.1 Thereafter, the free cash flows are expected to grow at the industry average of 4.3% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14,4%: a. Estimate the enterprise value of Heavy Metal, b. If Heavy Metal has no excess cash, debt of $301 million, and 45 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ million, (Round to two decimal places.)