PLEASE SHOW ALL STEPS INCLUDING FORMULAS AND/OR FINANCIAL CALCULATOR (do not just use excel without showing work)

Will thumbs up if done, thanks in advance

8) Use the table for the question(s) below. FCF Forecast ($ million) Year Sales 240 270 Growth versus Prior Year 12.5% EBIT (10% of Sales) 27.00 Less: Income Tax (37%) (9.99) Less Increase in NWC (12% of Change in Sales 3.6 Free Cash Flow 13.41 290 7.4% 29.00 10.73 2.4 15.87 310 6.9% 31.00 11.47 2.4 17.13 325.5 5.0% 32.55 12.44 1.86 18.65 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%, $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? A) $6.52 B) $11.74 C) $13.04 D) $23.48 Answer: C