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[1 point] Heavy Metal Corporation is expected to generate the following free cash flows over the next five years (see table). Thereafter, the free cash
[1 point] Heavy Metal Corporation is expected to generate the following free cash flows over the next five years (see table). Thereafter, 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%. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, what is your estimate of its share price?
\begin{tabular}{lccccc} Year & 1 & 2 & 3 & 4 & 5 \\ \hline FCF (\$million) & 53 & 68 & 78 & 75 & 82 \end{tabular}
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