3 310 FCF Forecast is million Year 1 Sales 200 270 Growth versus Prior Year 12.5% EBIT (10% of Sales) 27.00 Less: Income Tax (20% (5.40) Less Increase in NWC (12% of Change in Sales) 3.60 Free Cash How 1800 2 290 7.1% 2900 5.80 2.40 20.80 6.9% 3100 6.20 4 325 5 5.0% 3255 6.51 186 2418 2.10 22.40 Banco Industries expect sales to grow at a rapid rate over the next three years but settle to an industry growth rate of 7% 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 12%, $50 million in cash 570 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 $18.64 O B. $20.71 OC 510 36 OD. 537 28