Using information on future cash flows and comparable companies, as well as your estimate of Molycorp's cost of capital, determine the value or fair price of Molycorp stock. How does your answer compare to the current stock price ($11.49)?

Do you think the underlying cash flow projections in Exhibit 9 are reasonable? Why or why not?

What upcoming cash obligations does Molycorp have in addition to its funding needs for Project Phoenix? How much capital does Molycorp need to raise to complete Project Phoenix and meet its other cash obligations?

(Show calculations in Excel format)