Heavy Metal Corporation is expected to generate the following free cash flows over the next five years.

Year

1

2

3

4

5

FCF($ million)

53.0

68.0

78.0

75.0

82.0

Thereafter, the free cash flows are expected to grow at the industry average of 4.0% per year. Use the discounted free cash flow model and a WACC of 14.0% to estimate the following.

a. The enterprise value of Heavy Metal

b. HeavyMetal's share price if the company has no excesscash, debt of $300 million, and 40 million shares outstanding