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Help and explanation answering questions A and B Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:

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Help and explanation answering questions A and B

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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 ($ million) 51.4 67.5 78.1 74.4 83.7 Thereafter, the free cash flows are expected to grow at the industry average of 4.3% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.4%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $280 million, and 39 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.)

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