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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: (Click on the following icon in order to
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: (Click on the following icon in order to copy its contents into a spreadsheet.) 4 Year FCF (5 million) 1 52.8 2 69.3 3 79.5 5 80.3 73.1 After that, the free cash flows are expected to grow at the industry average of 3.6% 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 $298 million, and 38 million shares outstanding, estimate its share price
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