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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 ($

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

Year

1

2

3

4

5

FCF ($ million)

53.9

68.6

77.7

73.6

81.8

. 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 13.3%:

a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ million.

b. If Heavy Metal has no excess cash, debt of $306 million, and 42 million shares outstanding, estimate its share price

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