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After that, the free cash flows are expected to grow at the industry average of 3.9% per year. Using the discounted free cash flow model
After that, the free cash flows are expected to grow at the industry average of 3.9% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.1%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of 294 million, and 42 million shares outstanding, estimate its share price.
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: (Click on the following icon in order to copy its contents into a spreadsheet.) After that, the free cash flows are expected to grow at the industry average of 3.9% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.1% : a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $294 million, and 42 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.)Step by Step Solution
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