Brushy Mountain Mining Companys coal reserves are being depleted, so its sales are falling. Also, environmental costs
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Brushy Mountain Mining Company’s coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company’s free cash flows are declining at the constant rate of 4% per year. If its current free cash flow (FCF0 ) is $6 million and its weighted average cost of capital (WACC) is 14%, what is the estimated value of Brushy Mountain’s value of operations?
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Related Book For 
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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