subject
Business, 27.11.2019 02:31 jhanellemo0112

Gonzales corporation generated free cash flow of $88 million this year. for the next two years, the companyʹs free cash flow is expected to grow at a rate of 10%. after that time, the companyʹsfree cash flow is expected to level off to the industry long-term growth rate of 4% per year. ifthe 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 corporationʹsexpected terminal enterprise value in year 2? a) $1384.24b) $1245.82c) $1107.39d) $968.97

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 08:40
Mcdonald's fast-food restaurants have a well-designed training program for all new employees. each new employee is supposed to learn how to perform standardized tasks required to maintain mcdonald's service quality. due to labor shortages in some areas, new employees begin work as soon as they are hired and do not receive any off-the-job training. this nonconformity to standards creates
Answers: 2
question
Business, 22.06.2019 11:00
T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow
Answers: 1
question
Business, 23.06.2019 00:30
Suppose there is a 6 percent increase in the price of good x and a resulting 6 percent decrease in the quantity of x demanded. price elasticity of demand for x is a. 0 b. 6 c. 1 d. 36
Answers: 2
question
Business, 23.06.2019 07:40
In the short-run, marginal costs are equal to the change in variable costs as output changes. ( mc = change in variable cost / change in quantity) assume that capital is fixed in the short-run. (a) start with the equation for marginal cost and derive an equation that relates marginal cost of production to the cost and productivity of labor. (b) draw a standard looking short-run marginal cost curve and use the equation you derived to explain its shape.
Answers: 2
You know the right answer?
Gonzales corporation generated free cash flow of $88 million this year. for the next two years, the...
Questions
question
Mathematics, 07.11.2020 06:30
question
Health, 07.11.2020 06:30
question
English, 07.11.2020 06:30
question
Mathematics, 07.11.2020 06:30
Questions on the website: 13722363