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

Year 1 FCF 54.1, Year 2 FCF 69.7, Year 3 76.4, Year 4 74.3, Year 5 83.7

FCF ($ million)

Thereafter, the free cash flows are expected to grow at the industry average of 3.5 % per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.6 %:

a.Estimate the enterprise value of Heavy Metal.

b.If Heavy Metal has no excess cash, debt of $ 318 million, and 38 million shares outstanding, estimate its share price.