What is enzio electronic expected free cash flow

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Enzio Electronic generated free cash flow of $87 million this year (year 0). For the next two years, the company's free cash flow is expected to grow at a rate of 7.0%. After that time, the company's free cash flow is expected to level off to the industry long-term growth rate of 4.5% per year. Suppose the weighted average cost of capital is 10.5% and Enzio Electronic has cash of $110 million, debt of $280 million, and 100 million shares outstanding. What is Enzio Electronic's expected free cash flow in year 2?

Reference no: EM132602063

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