Is Question 1 Time Elapsed: HIC Attempt due: Oct 12 a 19 Minutes, 43 Set om Use the table for the question(s) below. FCF Forecast ($ million) Year 0 Sales 240 270 Growth versus Prior Year 12.5% EBIT (10% of Sales) 27.00 Less: Income Tax (37%) (9.99) Less Increase in NWC (12% of Change in 3.6 Sales) Free Cash Flow 13.41 2 3 4 290 310 325.5 7.4% 6.9% 5.0% 29.00 31.00 32.55 (10.73) (11.47) (12.44) 24 2.4 1.86 d 15.87 17.13 18.65 rive Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 5% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. Banco industries has a weighted average cost of capital of 11%, $40 million in cash, $70 million in debt, and 18 million shares outstanding, If Banco Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its stock price increase? O $3.27 O $3.92 O $5.72 $9.80