Conundrum Mining Is Expected to Generate the Above Free Cash

question 25

Multiple Choice

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 6% per year. If the weighted average cost of capital is 12% and Conundrum has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is Conundrum's expected terminal enterprise value?

• A)$413.4 million
• B)$459.3 million
• C)$505.3 million
• D)$528.2 million

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Definitions:

Ovulation

The phase in a female's menstrual cycle when a mature egg is released from the ovary to the fallopian tube for potential fertilization.

Menarche

The first occurrence of menstruation in a female, marking a significant milestone in the transition from girlhood to womanhood within the context of physical and reproductive development.

Ovulation

Ovulation is a phase in the female menstrual cycle where an egg is released from the ovary, making it available for fertilization.

Delayed Circadian Phase

A shift in the sleep–wake pattern in which adolescents tend to stay up later at night than they did as children and then sleep later in the morning.