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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: (Click on the following icon in order
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.) Year 1 2 3 FCF ($ million) 53.8 69.2 77.6 4 73.4 5 81.5 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 14.5%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $290 million, and 38 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.) PPearson Clear all Check answer
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