What is Conundrum expected terminal enterprise value

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Question - 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?

Year

1

2

3

4

Free Cash Flow

$12 million

$18 million

$22 million

$26 million

Reference no: EM133019331

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