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%. $30 million in cash, $60 million in debt, and 18 million shares outstanding, which of the following is the best estimate a Banco's stock price at the start of year 17

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%. $30 million in cash, $60 million in debt, and 18 million shares outstanding, which of the following is the best estimate a Banco's stock price at the start of year 17

Name: Aa 15. Use the table for the question(s) below.FCF Forecast 5 millionY
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Description: Aa 15. Use the table for the question(s) below.FCF Forecast 5 millionYearSalesGrowth verms Prior YearEBIT (10% of Sales)Less: Income Tax (20%0240,1270125%27.00(5:40)Less Increase in NWC (12% of Change in Sales) 3.00Free Cash Flow1800OA $17.45OB. $31.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 7P

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