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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years Year 2 FCF (S million) 51.4 68.679.6 73.3
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years Year 2 FCF (S million) 51.4 68.679.6 73.3 83.4 Thereafter, the free cash flows are expected to grow at the industry average of 3.9% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.9%; a. Estimate the enterprise value of Heavy Metal b. If Heavy Metal has no excess cash, debt of $291 million, and 38 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal The enterprise value will be $5884 million. (Round to two decimal places.)
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