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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.) Year FCF ($ million) 1 51.5 2 67.6 3 78.7 75.8 5 80.7 After that, the free cash flows are expected to grow at the industry average of 3.7% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.1% a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $295 million, and 36 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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