Question: Use the table for the question ( s ) below. Banco Industries expects sales to grow at a rapid rate over the next three years,

Use the table for the question(s) below.
Banco Industries expects 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. If Banco Industries has a weighted average
cost of capital of 12%,$50 million in cash, $60 million in debt, and 18 million shares
outstanding.
a. What is the best estimate of Banco's current share price?
b. If Banco Industries can reduce their operating expenses so that EBIT becomes 12% of
sales, by how much will their share price increase?
Use the table for the question(s) below. Banco Industries expects sales

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