Use the Table for the Question(s)below

question 35

Multiple Choice

Use the table for the question(s) below.
-Banco Industries expects 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 12%, $50 million in cash, $60 million in debt, and 18 million shares outstanding, which of the following is the best estimate of Banco's share price at the start of year 1?

• A)$20.11
• B)$11.12
• C)$12.03
• D)$6.03

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