What is conundrum expected terminal value

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Reference no: EM132024075

Year                                    1                         2                               3                         4

Free Cash Flow               $12 million         $18 million                  $22 million           $26 million

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 value?

$413.4 million

$459.3 million

$505.3 million

$528.2 million

Reference no: EM132024075

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