Gonzales Corporation Generated Free Cash Flow of $88 Million This

question 15

Multiple Choice

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)$1,779.15
• B)$1,641.60
• C)$1,579.15
• D)$1,441.60

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Definitions:

Negotiators' Effectiveness

The ability of negotiators to achieve desirable outcomes through effective communication, strategy application, and problem resolution.

Generous Deal

An offer or arrangement that is favorable and provides more benefits or value than what is typically expected.

Negotiation Goals

The desired outcomes or objectives one aims to achieve during a negotiation process.

Effective Negotiators

Individuals who are skilled in reaching agreements or resolving conflicts by finding solutions that are acceptable to all parties involved.