Use the Information for the Question(s)below

question 42

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 terminal enterprise value in year 2?

• A)$1,779.15
• B)$1,641.60
• C)$1,579.15
• D)$1,441.60
• E)$1,378.35

Apply factorization techniques to solve problems involving simple interest and geometric shapes.

Solve polynomial equations using the Zero-Factor Property.

Identify and apply factoring techniques to trinomials.

Factor expressions using common factoring techniques, including grouping and square of a binomial.

---

Definitions:

Adverse Selection

A situation in which sellers have information that buyers do not (or vice versa) about some aspect of product quality.

Moral Hazard

The risk that one party to a transaction has not entered into the contract in good faith, or has provided misleading information about its assets, liabilities, or credit capacity.

Dental Insurance

An insurance coverage designed to pay a portion of the costs associated with dental care, ranging from routine preventive care to more complex procedures.

High-Productivity

A measure of efficiency that describes a high output level per unit of input within a given time period.