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Year1234 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,
Year1234
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?
a.$305 million
b.$248 million
c.$215 million
d.$468 million
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