Question: need the answer asap, please Hopefully this is a better image. (Quantitative Question) Sora Industries currently has 60 million outstanding shares, $120 million in debt
Hopefully this is a better image. (Quantitative Question) Sora Industries currently has 60 million outstanding shares, $120 million in debt and $40 million in excess cash. Sales in the recently concluded financial year was $433 million. They are projected to grow at 8.996 next year, and from the second year onwards, at 5% per year. Furthermore, you are given that in the last financial year, Sora's i. Cost of goods sold was 70% of sales, ii. Selling, general and administrative expenses were 20% of sales, iii. Depreciation was 1.5% of sales iv. Net fixed assets were 22.5% of sales V. NOWC was 18% of sales. Assume these ratios remain constant forever, except that COGS will be 68% of sales in each year moving forward. If the tax rate for the firm is 40%, and the WACC is 10%. What is the stock price of Sora Industries using the FCE model? (Quantitative Question) Sora Industries currently has 60 million outstanding shares, 5120 million in debt and 540 million in excess cash. Sales in the recently concluded financial year was 435 million. They are projected to grow at 8.9 next year, and from the second year onwards at 5% per year. Furthermore, you are given that in the last financial year, Saras Cost of goods sold was 70% of sales, Il Selling general and administrative expenses were 20% of sales, Depreciation was 1.5% of sales iv. Netfoxed assets were 22.5% of sales V. NOWC was 18% of sales Assume these ratios remain constant forever, except that COGS will be 68% of sales in each year moving forward. If the tax rate for the firm is 40%, and the WACC is 10%. What is the stock price of Sora Industries using the FCE model
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