Use the following information to answer the next four questions: Heavy Metal Corporation is expected to generate the following cash flows over the next five years: Year 1 FCF (Millions)45 Question: 1437.14 After then, the firm's free cash flows are expected to grow at the industry average rate of 5% per year. Assume that Heavy Metal's weighted average cost of capital is 12%. O 791.67 O 1357.14 2 50 The terminal value (sometimes called the residual or continuation value) in year four, based upon Heavy Metal's free cash flows in years five and beyond would be closest to? (in millions) 1900.00 3 65 335.00 4 80 5 95

Use the following information to answer the next four questions: Heavy Metal Covporation is expected to generate the folowirg cash flows over the next fwe vears: After then, the firm's free cash flows are expected to gio, at the indistry average rate of 5% per year. Assume that Heavy Metal's weighted average cost of eapital is 124 Question: The terminal vatue (sometimes callod the sesidual or conthuation value) in year four, based upon Heavy Metals free cash flows in years five and beyond would bo closost to? (in inilions) 1437,14 791,67 1357.14 1900.00 335.00 Use the following information to answer the next four questions: Heavy Metal Covporation is expected to generate the folowirg cash flows over the next fwe vears: After then, the firm's free cash flows are expected to gio, at the indistry average rate of 5% per year. Assume that Heavy Metal's weighted average cost of eapital is 124 Question: The terminal vatue (sometimes callod the sesidual or conthuation value) in year four, based upon Heavy Metals free cash flows in years five and beyond would bo closost to? (in inilions) 1437,14 791,67 1357.14 1900.00 335.00