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Year Free Cash Flow 1 $12 million 2 $18 million 3 $22 million 4 $26 million Conundrum Mining is expected to generate the above free
Year Free Cash Flow 1 $12 million 2 $18 million 3 $22 million 4 $26 million 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 13% and Conundrum has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is Conundrum's expected terminal enterprise value? O A. $392.4 million B. $375.4 million C. $307.1 million D. $341.3 million
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