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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Thereafter, the free cash flows are expected to
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Thereafter, the free cash flows are expected to grow at the industry average of 4.0% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.0%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt f $300 million, and 40 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.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) 1 2 3 5 Year FCF ($ million) 53.0 68.0 78.0 75.0 82.0 Print Done
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