Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:

Year	1	2	3	4	5
FCF ($ million)	51.8	67.6	78.6	74.3	80.8

Thereafter, the free cash flows are expected to grow at the industry average of

3.5 %

per year. Using the discounted free cash flow model and a weighted average cost of capital of

13.6 %:

a.Estimate the enterprise value of Heavy Metal.

b.If Heavy Metal has no excess cash, debt of

$ 283

million, and

45

million shares outstanding, estimate its share price.

a.Estimate the enterprise value of Heavy Metal.