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Business, 27.11.2019 04:31 widnickab

Banco industries expect sales to grow at a rapid rate over the next three years, but settle to anindustry growth rate of 5% in year 4. the spreadsheet above shows a simplified pro forma forbanco industries. if banco industries has a weighted average cost of capital of 11%, $50 millionin cash, $80 million in debt, and 18 million shares outstanding, which of the following is the bestestimate of bancoʹs stock price at the start of year 1? a) $6.52b) $11.74c) $13.04d) $23.48

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