FCF Forecast ($ million)Year​​0​1​2​3​4​Sales​240​270​290​31…

Written by Anonymous on August 5, 2026 in Uncategorized with no comments.

Questions

FCF Fоrecаst ($ milliоn)Yeаr​​0​1​2​3​4​Sаles​240​270​290​310​325.5​Grоwth versus Prior Year​​12.5%​7.4%​6.9%​5.0%​EBIT (10% of Sales)​​27.00​29.00​31.00​32.55​Less: Income Tax (37%)​​(9.99)10.73​11.4712.44​Less Increase in NWC (12% of Change in Sales)​​3.60​2.40​2.40​1.86​Free Cash Flow​​13.4115.8717.1318.65Banco 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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