
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 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 terminal enterprise value?
A) $371.4 million
B) $390.0 million
C) $410.0 million
D) $391.4 million
Correct Answer:
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