Question: How do you solve this: Conundrum Mining is expected to generate the free cash flows over the next four years as follow (in mIllions): $12,

How do you solve this: Conundrum Mining is expected to generate the free cash flows over the next four years as follow (in mIllions): $12, $18, $22, $26 respectively. After which they are expected to grow at a rate of 5% 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 current share price

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!