Question
There is no more info for the question shppose Sora'a revenue and free cahs flow are expected to grow at a 4.5% rate beyond year
There is no more info for the question
shppose Sora'a revenue and free cahs flow are expected to grow at a 4.5% rate beyond year four.if Sora's weighted average cost of capital is 10.5% .
A. what is the value of sora stock based on this info ?
B. soa's cost of good sold was assumed to be 67% of sales. if its cost of good sold is actually 70% of sales, how would the estimate of the stock's value change?
C. Return to the assumption of par (a) and suppose sora can maintain its cost of good sold at 67% of sales.However, the firm reduces its selling, general, and administrative expenses from 20% of sales to 16% of sales. What price stock would estimate now ? ( assume no other expenses, except taxes, are affected )
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