Question 7 (2 points)

Conundrum Mining is expected to generate $12 million, $18 million, $22 million and $26 million in free cash flows over the next four years, 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?

Question 7 options:

	A)	$10.84
	B)	$13.72
	C)	$16.16
	D)	$16.25

Question 8 (2 points)

General Industries is expected to generate $22 million, $26 million, $29 million, $30 million and $32 million in free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 3% per year. If the weighted average cost of capital is 8% and General Industries has cash of $10 million, debt of $40 million, and 80 million shares outstanding, what is General Industries' expected current share price?

Question 8 options:

	A)	$6.60
	B)	$6.72
	C)	$7.67
	D)	$9.48