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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

image text in transcribedimage text in transcribedimage text in transcribed 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 3.6% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.3% : a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $302 million, and 40 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.) To determine the stock price per share, use the following formula: P0=SharesOutstandingV0+Cash0Debt0 V0=n=15(1+rWACC)nFCFn+(1+rWACC)51rWACCgFCFFCF5(1+gFCF) 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 3.6% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.3% : a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $302 million, and 40 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.) To determine the stock price per share, use the following formula: P0=SharesOutstandingV0+Cash0Debt0 V0=n=15(1+rWACC)nFCFn+(1+rWACC)51rWACCgFCFFCF5(1+gFCF)

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