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PLEASE ANSWER ALL PARTS! A and B. Homework: Chapter 10 Homework Score: 0 of 1 pt P 10-6 (similar to) 3 of 11 (3 complete)
PLEASE ANSWER ALL PARTS! A and B.
Homework: Chapter 10 Homework Score: 0 of 1 pt P 10-6 (similar to) 3 of 11 (3 complete) 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) 53.8 67.1 78.1 74.6 82.8 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 $315 million, and 41 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $1 million. (Round to two decimal places.)Step by Step Solution
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