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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) 54.6 69.3 76.6 73.6 81.2 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 13.5%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $306 million, and 44 million shares outstanding, estimate its share price
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