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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 2 in order
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: (Click on the following icon 2 in order to copy its contents into a spreadsheet.) 1 4 Year FCF (5 million) 2 68.9 3 77.9 5 83.4 53.9 74.1 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 13.7% a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $302 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.)
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