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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 e in order
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: (Click on the following icon e in order to copy its contents into a spreadsheet.) Year 1 2 B 68.4 3 79.9 4 75.4 5 82.9 FCF ($ million) 51.9 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 13.2%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $292 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.)
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