31.00 Use the table for the question(s) below FCF Forecast (5 million Year 0 1 Sales 2 240 3 4 270 290 Growth versus Prior Year 310 3255 EBIT (10% of Sales) 125% 7.4% 6.9% 27.00 2900 50% Less: Income Tax (37%) 32.55 Less Increase in NWC (12% of Change in Sales (9.90 1073 11.47 316 1244 Free Cash Flow 24 24 186 1587 1713 18.65 Banco Industries expects to grow at rapid te over the next 3 years, but setia to an industry growth rate of bin voard The broadest above shows a simplified pro forma for Banco Industries Banco GA 52.45 @B 5420 OC 12.04 OD STOS 13:41 Click to set your ne 2:57 PM ING FL Polecamon Year Sales 1 2 3 4 240 270 Growth versus Prior Year 200 310 3255 EBIT (10% of Sales 12546 7.4% 89 27.00 5.0% Less: Income Tax (37%) 20109 Less increase in NWC, 12% of Change in Sales) 19.99 10.73 31.0033.56 36 Free Cash Flow .224 12.44 24 1341 100 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 in year 4. The spread above shows a simplified proforma for Banco Industries Banco industries has a weighted average cost of capital of 13%$50 million in cash $80 milion indent, and 18 milion des outstanding. Banco Industries can reduce the operating expenses so that EBIT becomes 12% of sale by how much will their stock price increase? A $245 OB $420 C. 52.94 OD 5735 Chek to set your answer de ENG 258 PM 1122./2020