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Use the table for the question ( s ) below. Banco Industries expects sales to grow at a rapid rate over the next three years,
Use the table for the questions below. Banco Industries expects sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of in year The spreadsheet above shows a simplified pro forma for Banco Industries. If Banco Industries has a weighted average cost of capital of $ million in cash, $ million in debt, and million shares outstanding. a What is the best estimate of Banco's current share price? b If Banco Industries can reduce their operating expenses so that EBIT becomes of sales, by how much will their share price increase?
Use the table for the questions below.
Banco Industries expects sales to grow at a rapid rate over the next three years, but
settle to an industry growth rate of in year The spreadsheet above shows a
simplified pro forma for Banco Industries. If Banco Industries has a weighted average
cost of capital of $ million in cash, $ million in debt, and million shares
outstanding.
a What is the best estimate of Banco's current share price?
b If Banco Industries can reduce their operating expenses so that EBIT becomes of
sales, by how much will their share price increase?
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