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Score: 0 of 1 pt 3 of 11 (2 complete) HW Score: 18.18%, 2 of 11 pts P 10-6 (similar to) Question Help Heavy Metal

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Score: 0 of 1 pt 3 of 11 (2 complete) HW Score: 18.18%, 2 of 11 pts P 10-6 (similar to) Question Help 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) 54.9 69.5 76.2 73.8 81.2 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 14.4% a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $299 million, and 44 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be s million. (Round to two decimal places.)

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