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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
FCF $ million
Thereafter the free cash flows are expected to grow at the industry average of
per year. Using the discounted free cash flow model and a weighted average cost of capital of
a Estimate the enterprise value of Heavy MetalHeavyMetal
b If Heavy MetalHeavyMetal has no excess cash, debt of $
million, and
million shares outstanding, estimate its share price.
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