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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 - 4 5 FCF

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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 - 4 5 FCF (S million) 51.4 69.3 77.9 74.2 83.9 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 14.3% a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $294 million, and 37 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $1 million (Round to two decimal places.)

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