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6 of 14 (13 complete) Score: 0 of 1 pt HW Score: 85.71%, 12 of 14 pts P 10-6 (similar to) = Question Help Heavy

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6 of 14 (13 complete) Score: 0 of 1 pt HW Score: 85.71%, 12 of 14 pts P 10-6 (similar to) = Question Help Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 4. FCF (5 million) 53.4 68.6 79.5 75.4 83.4 Thereafter, the free cash flows are expected to grow at the industry average of 3.8% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.3%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $320 million, and 38 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ million. (Round to two decimal places.)

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