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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 4.3% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.6%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $315 million, and 43 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.) - X 1 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 2 3 4 5 FCF ($ million) 53.5 66.6 79.1 76.6 80.1 Print Done
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