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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 3.5% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.3%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $310 million, and 37 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 3 4. 5 Year FCF (5 million) 2 66.7 51.7 77.3 74.6 80.8 Print Done
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