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 13.8%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $289 million, and 45 million shares outstanding, estimate its share price.

Year 1 2 3 4 5 FCF ($ million) 54.5 67.4 78.8 76.9 82.2