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Use the table for the question(s) below. Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to

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Use the table for the question(s) below. Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 4% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. Banco industries has a weighted average cost of capital of 10%,$30 million in cash, $60 million in debt, and 18 million shares outstanding. If Banco Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its stock price increase? A. $4.27 B. $7.47 C. $12.8 D. $5.12

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