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13 Gonzales Corporation generated free cash flow of $87 million this year. For the next two years, the company's free cash flow is expected to
13
Gonzales Corporation generated free cash flow of $87 million this year. For the next two years, the company's free cash flow is expected to grow at a rate of 10%. After that time, the company's free cash flow is expected to level off to the industry long-term growth rate of 4% per year. If the weighted average cost of capital is 12% and Gonzales Corporation has cash of $90 million, debt of $250 million, and 100 million shares outstanding, what is Gonzales Corporation's expected current share price? O A. $12.65 OB. $10.45 O C. $11 OD. $14.3Step by Step Solution
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