Answer Question 4 pictured, parts A through D. Show all your work and refer to the table attached. You will need to use Excel.

Data table (Click on the following icon CI in order to copy its contents into a spreadsheet.) 1 Year 0 1 2 3 4 2 Earnings and FCF Forecast ($ million) 3 Sales 433.0 468.0 516.0 547.0 574.30 4 Growth Versus Prior Year 8.1% 10.3% 6.0% 5.0% 5 Cost of Goods Sold (313.6) (345.7) (366.5) (384.78) 6 Gross Profit 154.4 170.3 180.5 189.52 7 Selling, General, and Administrative (93.6) (103.2) (109.4) (114.86) 8 Depreciation (7.0) (7.5) (9.0) (9.50) 9 EBIT 53.8 59.6 62.1 65.16 10 Less: Income Tax at 25% (13.5) (14.9) (15.5) (16.29) 11 Plus: Depreciation 7.0 7.5 9.0 9.50 12 Less: Capital Expenditures (7.7) (10.0) (9.9) (10.41) 13 Less: Increase in NWC (6.3) (8.6) (5.6) (4.91) 14 Free Cash Flow 33.4 33.5 40.1 43.1 Sora Industries has 60 million outstanding shares, $129 million in debt, $43 million in cash, and the following projected free cash flow for the next four years: g . a. Suppose Sora's revenue and free cash ow are expected to grow at a 4.4% rate beyond year tour. lf Sora's weighted average cost of capital is 9.0%, what is the value of Sara 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? 6. Return to the assumptions of part (a) and suppose Sora can maintain its cost of goods sold at 67% of sales. However, the rm 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 ow in year 1.} a. Suppose Sora's revenue and free cash ow are expected to grow at a 4.4% rate beyond year tour. If Sora's weighted average cost of capital is 9.0%, what is the value of Sora stock based on this information? The stock price for this case is $ 12.12 . (Round to the nearest cent.) 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 price for this case, when COGS increases, is $ . (Round to the nearest cent.)