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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) 53.2 69.9 78.8 73.1 81.5 Thereafter, the free cash flows are expected to grow at the industry average of 3.8% per year. Use the discounted free cash flow model and a WACC of 13.2% to estimate the following. a. The enterprise value of Heavy Metal b. Heavy Metal's share price if the company has no excess cash, debt of $307 million, and 38 million shares outstanding a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ million. (Round to two decimal places.) b. Estimate Heavy Metal's share price if the company has no excess cash, debt of $307 million, and 38 million shares outstanding. The stock price per share will be $ . (Round to the nearest cent.)
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