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Value of Stock

Sora Industries has 60 milliion outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years:
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Suppose Sora's revenue and free cash flow are expected to grow at a 5% rate beyond year 4. If Sora's weighted average cost of capital is 10%, what is the value of Sora's stock based on this information?

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Sora Industries has 60 milliion outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years:

Suppose Sora's revenue and free cash flow are expected to grow at a 5% rate beyond year 4. If Sora's weighted average cost of capital is 10%, what is the value of Sora's stock based on this information?

Free Cash ...

Solution Summary

Calculates value of stock, given free cash flow and weighted average cost of capital.

$2.19