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Please show the process! FCF Forecast ($ million) Year 0 1 2 3 4 Sales 240 270 290 310 325.5 Growth versus Prior Yea r

Please show the process!

FCF Forecast ($ million)
Year 0 1 2 3 4
Sales 240 270 290 310 325.5
Growth versus Prior Year 12.50% 7.40% 6.90% 5.00%
EBIT (10% of Sales) 27 29 31 32.55
Less: Income Tax (37%) -9.99 10.73 11.47 12.44
Less Increase in NWC (12% of Change in Sales) 3.6 2.4 2.4 1.86
Free Cash Flow 13.41 15.87 17.13 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?

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