Use the Information for the Question(s)below

question 29

Multiple Choice

Use the information for the question(s) below.
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.Suppose 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 free cash flow in year 2?

• A)$1,779.15
• B)$95.04
• C)$1,881.80
• D)$102.64
• E)$401.52

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Definitions:

Amygdala

A region of the brain involved in emotional processes, including fear and pleasure.

Cerebellum

A section of the brain located at the back, which plays a crucial role in motor control, balance, and coordination.

Consolidation

The process by which memories become stable in the brain, transferring from short-term to long-term memory storage.

Retrograde Amnesia

A form of amnesia where an individual loses pre-existing memories to some extent but usually does not affect the ability to form new ones.