Sora Industries has 66 million outstandingshares, $125 million indebt, $49 million incash, and the following projected free cash flow for the next four years

Years: 0 1 2 3 4

Earnings& FCF Forecast($ million)

1. Sales 433.0 468.0 516.0 547.0 574.3
2. Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0%
3. Cost of Goods Sold (313.6) (345.7) (366.5) (384.8)
4. Gross Profit 154.4 170.3 180.5 189.5
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 at40% (21.5) (23.8) (24.8) (26.1)
9. Plus: Depreciation 7.0 7.5 9.0 9.5
10. Less: Capital Expenditures (7.7) (10.0) (9.9) (10.4)
11. Less: Increases in NWC (6.3) (8.6) (5.6) (4.9)
12. Free Cash Flow 25.3 24.6 30.8 33.3

a. SupposeSora's revenue and free cash flow are expected to grow at a 4.9% rate beyond year 4. IfSora's weighted average cost of capital is 11.0%, what is the value ofSora's stock based on thisinformation?

b.Sora's cost of goods sold was assumed to be67% of sales. If its cost of goods sold is actually70% ofsales, how would the estimate of thestock's valuechange?

c. Let's return to the assumptions of part (a) and suppose Sora can maintain its cost of goods sold at67% of sales.However, now suppose Sora reduces itsselling, general, and administrative expenses from20% of sales to16% of sales. What stock price would you estimatenow? (Assume no otherexpenses, excepttaxes, areaffected.)

d. Sora's net working capital needs were estimated to be18% of sales(which is their current level in year0). If Sora can reduce this requirement to12% of sales starting in year1, but all other assumptions remain as in part (a), what stock price do you estimate forSora? (Hint: This change will have the largest impact onSora's free cash flow in year1.)

Nothing is missing this is the exact question from Pearson MyLab, nothing is different and the question is from an accredited college website I do not believe anything is missing from it and if it is then Pearson needs to edit their homework question.