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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years. Year 2 3 4 5 FCF ($ million)
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years. Year 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. Heavy Metal's share price if the company has no excess cash, debt of $300 million, and 40 million shares outstanding
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