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Please help!!! 18 Use the table for the question(s) below. Banco Industries expect sales to grow at a rapid rate over the next three years,

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Please help!!!

18

Use the table for the question(s) below. 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 11%,$40 million in cash, $60 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. $32.41 B. $18.01 C. $16.21 D. $9

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