Question
Hi can you help me with this one I'am not getting the process of getting the enterprice value and the price Heavy Metal Corporation is
Hi can you help me with this one I'am not getting the process of getting the enterprice value and the price
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) | 52.1 | 68.6 | 79.3 | 74.4 | 83.2 |
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
13.3%:
a.Estimate the enterprise value of Heavy Metal.
b.If Heavy Metal has no excess cash, debt of
$314
million, and
38
million shares outstanding, estimate its share price.
a.Estimate the enterprise value of Heavy Metal.
The enterprise value will be
$nothing
million.
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