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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: 1 2 3 4 Year FCF ($ million)
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: 1 2 3 4 Year FCF ($ million) 51.8 66.3 78.7 74.9 81.3 Thereafter, the free cash flows are expected to grow at the industry average of 3.8% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.2%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $283 million, and 41 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 $283 million, and 41 million shares outstanding, estimate its share price. The stock price per share will be $. (Round to the nearest cent.)
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