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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: year. Using the discounted free cash flow
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: year. Using the discounted free cash flow model and a weighted average cost of capital of 14.1%: a. Estimate the enterprise value of Heavy Metal. Thereafter, the free cash flows are expected to grow at the industry average of 4.3% per b. If Heavy Metal has no excess cash, debt of $301 million, and 45 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 51.2 2 69.1 3 4 78.3 5 73.5 81.7 Print Done
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