Question
Heavy Metal Corporation is expected to generate the following cash flows over the next five years: Year 1 2 3 4 5 FCF ($ million)
Heavy Metal Corporation is expected to generate the following cash flows over the next five years:
Year | 1 | 2 | 3 | 4 | 5 |
FCF ($ million) | 51.3 | 66.5 | 79.9 | 73.1 | 83.3 |
After that, the free cash flows are expected to grow at the industry average of 4.2% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.8%:
The enterprise value will be $__________ million. (Round to two decimal places.)
If Heavy Metal has no excess cash, debt of $297 million, and 36 shares outstanding, its stock price per share will be $__________. (Round to two decimal places.)
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