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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 3 4 5 Year FCF ($ million) 51.5 69.6 78.7 73.4 81.1 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 14.3%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $313 million, and 40 million shares outstanding, estimate its share price
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