Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:

After then, the free cash flows are expected to grow at the industry average of 4% per year.
Using the discounted free cash flow model and a weighted average cost of capital of 14%:

a. Estimate the enterprise value of Heavy Metal.

b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price.Appendix

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Year 1 2 3 4 5 FCF ($ millions) 53 89 68 78 75 82