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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.) 1 2 4 5 Year FCF ($ million) 3 77.2 51.2 69.8 76.5 80.5 After that, 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 14.5%: a. Estimate the enterprise value of Heavy Metal. 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.) b. If Heavy Metal has no excess cash, debt of $301 million, and 45 million shares outstanding, estimate its share price. The stock price per share will be $ (Round to two decimal places.)
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