What is gonzales corporation expected current share price

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Gonzales Corporation generated free cash flow of $81 million this year. For the next two years, the company's free cash ?ow is expected to grow at a rate of 8%. After that time, the company's free cash ?ow 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 $100 million, debt of $300 million, and 100 million shares outstanding. What is Gonzales Corporation's expected current share price?

Reference no: EM133002936

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