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Part $1$

Heavy Metal Corporation is expected to generate the following free cash flows over the next five$$ years:$($Click on the following icon in order to copy its contents into a$$ spreadsheet.$)$

Year

$1$

$2$

$3$

$4$

$5$

FCF$($$ million$)$

$51\mathrm{.}2$

$67\mathrm{.}2$

$76\mathrm{.}6$

$73\mathrm{.}9$

$83\mathrm{.}5$

After$$ that, the free cash flows are expected to grow at the industry average of $4\mathrm{.}1\%$ per year. Using the discounted free cash flow model and a weighted average cost of capital of $14\mathrm{.}3\%$:

a$.$ Estimate the enterprise value of Heavy Metal.

b$.$ If Heavy Metal has no excess$$ cash, debt of $ $298$million$,$ and $35$ million shares$$ outstanding, estimate its share price.