a.$ 25.41

b. $14.11

c. $50.81

d. $28.23

2 3 FCF Forecast ($ million) Year 0 1 Sales 240 270 Growth versius 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 Flow 18.00 2 290 7.4% 29.00 5.SO 2.40 20.80 3 310 6.9% 31.00 6.20 2.40 22.40 4 325.5 5.0% 32.55 6.51 1.86 2418 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 9%, $50 million in cash, 560 million in debt, and 18 million shares outstanding, which of the following is the best estimate of Banco's stock price at the start of year 1? 2 3 FCF Forecast ($ million) Year 0 1 Sales 240 270 Growth versius 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 Flow 18.00 2 290 7.4% 29.00 5.SO 2.40 20.80 3 310 6.9% 31.00 6.20 2.40 22.40 4 325.5 5.0% 32.55 6.51 1.86 2418 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 9%, $50 million in cash, 560 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