Take The Top Off The Mountain Mining coal reserves are being depleted and sales are falling.

Its costs are rising due to environmental issues. This company's FCF is declining

at a constant rate = 5% per year.

The current Free Cash Flow (FCF) =

$10,000,000

WACC =

13%

a. What is the estimated value of Take The Top Off The Mountain's operations?

FCF Growth =

-5%

b. If Take The Top Off The Mountain's FCF constant growth rate was Zero ("0") rather than -5%, then what is their estimated value of operations?

FCF Growth =

0%

c. If Take The Top Off The Mountain's FCF constant growth rate was 3% rather than either zero or -5%, then what is their estimated value of operations?

FCF Growth =

3%