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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 4.1% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.1%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $295 million, and 44 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 1 - X (Click on the following icon in order to copy its contents into a spreadsheet.) 1 2 3 4 5 Year FCF ($ million) 54.3 68.9 79.2 76.8 80.4 Print Done and then click Check
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