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Use the table for the question(s) below. FCF Forecast ($ million) Year01234 Sales240270290310325.5 Growth versus Prior Year 12.5%7.4%6.9%5.0% EBIT (10% of Sales) 27.0029.0031.0032.55 Less: Income
Use the table for the question(s) below. FCF Forecast ($ million) Year01234 Sales240270290310325.5 Growth versus Prior Year 12.5%7.4%6.9%5.0% EBIT (10% of Sales) 27.0029.0031.0032.55 Less: Income Tax (20%)(5.40)5.806.206.51 Less Increase in NWC (12% of Change in Sales)3.602.402.401.86 Free Cash Flow 18.0020.8022.4024.18 Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 7% 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 10%, $30 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? O A. $60.6 O B. $33.66 O C. $16.83 OD. $30.3 Use the table for the question(s) below. FCF Forecast ($ million) Year01234 Sales240270290310325.5 Growth versus Prior Year 12.5%7.4%6.9%5.0% EBIT (10% of Sales) 27.0029.0031.0032.55 Less: Income Tax (20%)(5.40)5.806.206.51 Less Increase in NWC (12% of Change in Sales)3.602.402.401.86 Free Cash Flow 18.0020.8022.4024.18 Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 7% 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 10%, $30 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? O A. $60.6 O B. $33.66 O C. $16.83 OD. $30.3
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