Answer A & B

Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: 1 Year 2 3 FCF ($ million) 54.7 67.8 77.6 76.4 82.1 (Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet.) After that, the free cash flows are expected to grow at the industry average of 3.6% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.8%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $303 million, and 36 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $1 million. (Round to two decimal places.)