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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 4 5 FCF ($
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) 52.4 67.8 76.7 73.3 80.9 Thereafter, the free cash flows are expected to grow at the industry average of 4.3 % per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.3 % : a.Estimate the enterprise value of Heavy Metal. b.If Heavy Metal has no excess cash, debt of $ 288 million, and 36 million shares outstanding, estimate its share price.
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