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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years (see table). Thereafter, the free cash flows are
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years (see table). Thereafter, the free cash flows are expected to grow at the industry average of 2% per year. The firm's a weighted average cost of capital is 10%. If Heavy Metal has $200 million in excess cash, outstanding debt worth $100 million, and 10 million shares outstanding, what is your estimate of its share price?
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