What is enzio electronic expected free cash flow

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Problem 1: Enzio Electronic generated free cash flow of $88 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 3.5% per year. Suppose the weighted average cost of capital is 11.0% and Enzio Electronic has cash of $90 million, debt of $310 million, and 90 million shares outstanding. What is Enzio Electronic's expected free cash flow in year 2?

Reference no: EM132965253

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