What is conundrum expected terminal enterprise value

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Year                                     1                     2                   3                           4
Free Cash Flow            $12 million     $18 million       $22 million   $26 million

Problem 1: Conundrum Mining is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 6% per year. If the weighted average cost of capital is 12% and Conundrum has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is Conundrum's expected terminal enterprise value?

 

Reference no: EM132929097

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What is conundrum expected terminal enterprise value : Conundrum has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is Conundrum's expected terminal enterprise value?
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