Question: do both for an automatic thumbs up please Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the

do both for an automatic thumbs up please
do both for an automatic thumbs up please Gonzales Corporation generated free
cash flow of $86 million this year. For the next two years,

Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the company's free cash flow is expected to grow at a rate of 7%. 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 12% and Gonzales Corporation has cash of $80 million, debt of $250 million, and 100 million shares outstanding, what is Gonzales Corporation's expected current share price? A. $9.61 B. $10.11 C. $13.14 D $11.63 After spending a year and $55,000, you finally have the design of your new product ready. In order to start production, you will need $30,000 in raw materials and you will also need to use some existing equipment that you've fully depreciated, but which has a market value of $98,000. Your colleague notes that the new product could represent 10% of the company's overall sales and that 10% of overhead is $60,000. Your tax rate is 38%. As you start your analysis of the product, what should be your initial incremental free cash flow? The initial Incremental free cash flow is $. (Round to the nearest dollar. Be sure to use a negative sign if the answer is negative.)

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