0 1 N Use the table for the question(s) below. FCF Forecast ($ million) Year 3 4 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 Less: Income Tax (37%) (9.99) 10.73 11.47 12.44 Less: Increase in NWC (12% of Change in Sales). 3.6 2.4 2.4 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. If Banco industries has a weighted average cost of capital of 10%, $40 million in cash, $70 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 1? A. $14.42 O B. $8.01 O c. $28.84 D. $16.02