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Year1234 Free Cash Flow$12 million$18 million$22 million$26 millionConundrum Mining is expected to generate the above free cash flows over the next four years, after which
Year1234
Free Cash
Flow$12
million$18 million$22 million$26 millionConundrum 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
4%
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 current share price?
A.
$14.31
B.
$8.67
C.
$13.88
D. $11.27
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