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I cannot figure out the formula to input to get the answer in G20. I have the answer already in the blank, but it has
I cannot figure out the formula to input to get the answer in G20. I have the answer already in the blank, but it has to have the formula.
Problem 9-19 Heavy Metal Corporation is expected to generate the following free cash flows over the nex five years: Year FCF (million) 1 $53 2 $68 3 $78 After then, the free cash flows are expected to grow at the industry average of 4% per year. model and a weighted average cost of capital of 14%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outsta Cost of capital Long-run growth rate 14.00% 4.00% Year FCF (million) 1 $53.00 2 $68.00 3 $78.00 Terminal value (million) Total cash flow (million) $53.00 $68.00 $78.00 a. Estimate the enterprise value of Heavy Metal. Enterprise value (million) V(0)= b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outsta Requirements Debt (million) Number of shares (million) $300.00 40 Equity value (million) Stock price $681.37 $9.53 . In cell G19, by using cell references, calculate the terminal value of the company at the end . In cell G20, by using cell references, calculate the total cash flows for year 4. . In cell D24, calculate the enterprise value of the company by using the function NPV. . In cell D31, by using cell references, calculate the equity value of the company. . In cell D32, by using cell references, calculate the stock price. cash flows over the next 4 $75 5 $82 verage of 4% per year. Using the discounted free cash flow 40 million shares outstanding, estimate its share price. 4 $75.00 5 $82.00 $820.00 $895.00 40 million shares outstanding, estimate its share price. the company at the end of year 4. he function NPV. e companyStep by Step Solution
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