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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 5 FCF ($ million)
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 5 FCF ($ million) 52.2 68.6 77.6 76.9 81.4 Thereafter, 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 14.1%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $280 million, and 41 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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