FCF Forecast ($ million)

Year01234

Sales240270290310325.5

Growth versus Prior

Year12.5%7.4%6.9%5.0%

EBIT (10% of

Sales)27.0029.0031.0032.55

Less: Income Tax

(20%)(5.40)5.806.206.51

Less Increase in NWC (12% of Change in

Sales)3.602.402.401.86

Free Cash

Flow18.0020.8022.4024.18

Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 6% 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, $80 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?