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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
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 11% and Conundrum has cash of $85 million, debt of $65 million, and 30 million shares outstanding, what is Conundrum's expected current share price? A) $12.61 B) $16.40 C) $20.18 D) $20.81
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