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Please help Gonzales Corporation generated free cash flow of $88 million this year. For the next two years, the company's free cash flow is expected
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Gonzales Corporation generated free cash flow of $88 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 $100 million, debt of $300 million, and 100 million shares outstanding, what is Gonzales Corporation's expected terminal enterprise value in year 2? O $968.97 O $1384.24 $1107.39 O $1245.82Step by Step Solution
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