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P 10-7 (similar to) Question Help * Sora Industries has 62 million outstanding shares, $120...

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P 10-7 (similar to) Question Help * Sora Industries has 62 million outstanding shares, $120 million in debt, $53 million in cash, and the following projected free cash flow for the next four years: Year Earnings and FCF Forecast ($ 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 574.3 50% (313.6) (345.7) (366.5) (384.8) 189.5 (93.6) 103.2 109.4) (114.9) (9.5) 65.2 433.0 516 547.0 6.0% 468.0 0 8.1% 10.3% 170.3 (7.0) 7.5) 154.4 180.5 (9.0) 62.1 (21.5) (23.8) (24.8) 9.0 53.8 59.6 7.0 7.5 9.5 a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.9% 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? The stock price for this case is S (Round to the nearest cent.)

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