Question: 1 4 Use the table for the question(s) below. FCF Forecast (s million) Year 0 2 3 Sales 240 270 290 310 325.5 Growth vs.

1 4 Use the table for the question(s) below. FCF Forecast (s million) Year 0 2 3 Sales 240 270 290 310 325.5 Growth vs. Prior Year 12.5% 7.4% 6.9% 5.0% EBIT (10% of Sales) 27.00 29.00 31.00 32.55 Loss: Income Tax (37%) (9.99) 10.73 11.47 12.44 Less: Increase in NWC (12% of Change in Sales) 3.5 24 24 1.86 Free Cash Flow 13.41 15.87 17.13 18.65 Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 5% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries, I Banco industries has a weighted average cost of capital of 11%. $50 million in cash. 500 million in debt, and 18 million shares outstanding, which of the following is the best estimate of Banco's stock price at the start of year 19 A $14.15 8. 57.00 OC $25.48 D. $12.74

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