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Heavy Metal Corporation is expected to generate the following free cash flows over the next three years: Year 1 2 3 FCF ( $ million
Heavy Metal Corporation is expected to generate the following free cash flows over the next three 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 :
aEstimate the enterprise value of Heavy Metal.
bIf Heavy Metal has no excess cash, debt of $ million and million shares outstanding, estimate its share price.
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