What is gonzales corporations expected terminal enterprise


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 8%. 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? A) $1,441.60 B) $1,579.15 C) $1,779.15 D) $1,641.60

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Financial Management: What is gonzales corporations expected terminal enterprise
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