Question
2. Year 1 2 3 4 Free cash flow $12 million $18 million $22 million $26 million Australia Mining (AM) is expected to generate the
2.
Year 1 2 3 4
Free cash flow $12 million $18 million $22 million $26 million
Australia Mining (AM) 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%, what is AM's current value?
$305 million
$248 million
$215 million
$468 million
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
