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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: After then, the free cash flows are expected
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: After then, the free cash flows are expected to grow at the industry average of 4% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. Enterprise value (million) b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price. Requirements In cell G19, by using cell references, calculate the terminal value of the company at the end of year 4. In cell G20, by using cell references, calculate the total cash flows for year 4. In cell D24, calculate the enterprise value of the company by using the function NPV. In cell D31, by using cell references, calculate the equity value of the company. In cell D32, by using cell references, calculate the stock price
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