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Gonzales Corporation generated free cash flow of $80 million this year. For the next two years, the company's free cash flow is expected to grow
Gonzales Corporation generated free cash flow of
$80
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
9%
and Gonzales Corporation has cash of
$90
million, debt of
$275
million, and 100 million shares outstanding, what is Gonzales Corporation's expected current share price?
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