Year 1 2 3 4Free 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 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 at year 4?
A: $413.4 million
B: $459.3 million
C: $505.3 million
D: $528.2 million
A: $413.4 million
B: $459.3 million
C: $505.3 million
D: $528.2 million
举一反三
- Initial Investment Cash flowProject A $35 million $14 million per year for four yearsProject B $21 million $7 million per year for five years Project C $14 million $7 million per year for four years Project D $21 million $10.5 million per year for three years An investor has a budget of $35 million. He can invest in the projects shown above. If the cost of capital is 8%, what investment or investments should he make? A: Project A B: Project B C: Project B and Project C D: Project C and Project D
- In the year 2000, it is expected that world population will be （）. A: 350 million B: 25,000 million C: 4,000 million D: 7,000 million
- A company is considering entering into a joint venture that will require an investment of $30 million. The project is expected to generate cash flows of $7 million, $14 million, and $15 million in each of the next three years, respectively. Assuming a discount rate of 7%, what is the project"s NPV A: -$5343200 B: -$3702900 C: +$1563400
- A company is considering entering into a joint venture that will require an investment of $15 million. The project is expected to generate cash flows of $9 million and $8 million in each of the next two years, respectively. What is the project"s IRR A: 9% B: 14% C: 15%
- Most experts agree that millions of cases of cancer could be prevented every year by considering environmental factors. How many million? A: 1 million B: 2 million C: 3 million D: 4 million