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%, $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?
A) $6.52
B) $11.74
C) $13.04
D) $23.48
Answer: C
Business
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A bond yielded a real rate of return of 3.87 percent for a time period when the inflation rate was 3.75 percent. What was the actual nominal rate of return?
A. 87.58 percent B. 7.62 percent C. 7.77 percent D. 8.28 percent E. .36 percent
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An executory contract refers to a contract or lease that has not been fully performed
Indicate whether the statement is true or false
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