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:

Contact Configurations

The arrangement and specification of contacts within electrical devices, defining their operational functionalities.

Contactor

An electrically controlled switch used for switching an electrical power circuit, commonly used in motor and lighting applications.

Energized

A term used to describe when an electrical component or circuit has voltage applied and is functioning or ready to function.

Holding Contacts

Electrical contacts designed to maintain power in a circuit after an initial actuation, typically found in relays and starters to keep circuits closed.