Heavy Metal Corporation is expected to generate the following free cash flows over the next three years:

Year 1: 21 2: 40 3: 47 FCF ($ million)

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 14.1%:

a.Estimate the enterprise value of Heavy Metal.

b.If Heavy Metal has no excess cash, debt of $285 million, and 43 million shares outstanding, estimate its share price.