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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: 3.6% per year. Using the discounted free
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: 3.6% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.6%: a. Estimate the enterprise value of Heavy Metal. Thereafter, the free cash flows are expected to grow at the industry average of b. If Heavy Metal has no excess cash, debt of $283 million, and 42 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.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year FCF ($ million) 1 54.8 2 68.2 3 4 5 79.4 75.5 81.7 Print Done -
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