240 Use the table for the question(s) below. FCF Forecast ($ million) Year 0 1 2 Sales 270 290 310 325.5 Growth versus 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. 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 3 years, but settle to an industry growth rate of 4% 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%. $30 million in cash, 580 million in debt, and 18 million shares outstanding. I Banco Industries can reduce their operating expenses so that EBIT becomes 12% of sales, by how much will their stock price increase? O A. $5.03 B. $3.45 OF $8.62 OD. $2.87