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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 2 61 FCF ( million) 54.469.479.3 73.5
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 2 61 FCF ( million) 54.469.479.3 73.5 80.3 Thereafter, the free cash flows are expected to grow at the industry average of 4.4% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.4%; a. Estimate the enterprise value of Heavy Metal b. If Heavy Metal has no excess cash, debt of $313 million, and 35 million shares outstanding, estimate its share price
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