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Business, 19.11.2019 00:31 kaylam5599

Gonzales corporation generated free cash flow of $ 85 million this year. for the next two years, the company's free cash flow is expected to grow at a rate of 7%. 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 10% 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?

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