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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 3.7% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.5% a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $305 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.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 2 3 4 5 FCF (S million) 51.1 66.5 76.2 75.5 81.5 Print Done
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