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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
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 per year. Using the discounted free cash flow model and a weighted average cost of capital of :
a Estimate the enterprise value of Heavy Metal.
b If Heavy Metal has no excess cash, debt of $ million, and 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.
b If Heavy Metal has no excess cash, debt of $ million, and million shares outstanding, estimate its share price.
The stock price per share will be $Round to the nearest cent.
Data table
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tableYearFCF $ million
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