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Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 4 5 FCF ( $ million

Corporation is expected to generate the following free cash flows over the next five years:
Year 12345
FCF ($ million)53.068.078.075.082.0
.
Thereafter, the free cash flows are expected to grow at the industry average of
4.0%
per year. Using the discounted free cash flow model and a weighted average cost of capital of
13.5%
a. Estimate the enterprise value of Heavy MetalHeavyMetal.
b. If Heavy MetalHeavyMetal has no excess cash, debt of $ 310
million, and 40
million shares outstanding, estimate its share price.

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