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Business, 13.11.2019 18:31 tykiabrown8111

Gonzales corporation generated free cash flow of 86 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 11% and gonzales corporation has cash of 100 million debt of $275 million, and 100 million shares outstanding, what is gonzales corporation's expected current share price?
a) $14.37
b) $11.87
c) $12.49
d) $16.24

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