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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:(Click on the following icon in order to copy

Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:(Click on the following icon in order to copy its contents into a spreadsheet.)

Year

1

2

3

4

5

FCF ($ million)

53.3

69.2

77.5

74.4

80.8

After that, the free cash flows are expected to grow at the industry average of 3.7% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.1%:

a. Estimate the enterprise value of Heavy Metal.

b. If Heavy Metal has no excess cash, debt of $314 million, and 45 million shares outstanding, estimate its share price.

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