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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: B:. Thereafter, the free cash flows are expected
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: B:. Thereafter, the free cash flows are expected to grow at the industry average of 4.2% per year. The cost of equity is 21.2%, the cost of debt is 7.2%, and the weighted average cost of capital is 14.2%. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ million. (6 points) (Round to two decimal places.) b. If Heavy Metal has no excess cash, debt of $287 million, and 39 million shares outstanding, estimate its share price. The stock price per share will be $ (6 points) (Round to the nearest cent.) i - X Data Table (Click on the following icon o in order to copy its contents into a spreadsheet.) Year 1 2 3 4 5 FCF ($ million) 51.2 69.4 79.5 74.9 80.4 Print Done
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