Heavy Metal Corporation is expected to generate the following free cash flows over the next fiveyears:

Year	1	2	3	4	5
FCF ($ million)	52.2	67.4	78.7	73.9	83.1

Thereafter, the free cash flows are expected to grow at the industry average of 3.9%

per year. Using the discounted free cash flow model and a weighted average cost of capital of

14.7%:

a.Estimate the enterprise value of Heavy Metal.

b.If Heavy Metal has no excess cash, debt of $318 million, and 36

million shares outstanding, estimate its share price.