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Question A and B please. 1 2 3 4 5 52.5 775 Heavy Metal Corporation is expected to generate the following free cash flows over
Question A and B please.
1 2 3 4 5 52.5 775 Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year FCF ($ million) 671 76.8 81.1 Thereafter, 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 13.4% a. Estimate the enterprise value of Heavy Metal b. I Heavy Metal has no excess cash, debt of $306 million, and 44 millon shares outstanding, ontimato its share prico. a. Estimate the enterprise value of Heavy Metal The enterprise value will be $milion (Round to two decimal places) Step by Step Solution
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