Conundrum Mining Is Expected to Generate the Above Free Cash

question 37

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 5% 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)$371.4 million
• B)$390.0 million
• C)$410.0 million
• D)$391.4 million

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Definitions:

Symbolic Interactionists

Sociologists who study how people use symbols to create meaning, communicate, form views of the world, and develop their sense of self.

Produce and Interpret

The process of creating something and then making sense of it or assigning meaning to it.

Culture

The collective values, traditions, rituals, and societal conduct specific to a certain country or community.

Jean Baudrillard

A French philosopher and sociologist known for his critical theories about media, culture, and technological communication, as well as for his concept of hyperreality.