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Year 1 2 2 3 4 5 FCF ($ million) 51.8 69.1 76.8 76.2 83.7 Heavy Metal Corporation is expected to generate the following free

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Year 1 2 2 3 4 5 FCF ($ million) 51.8 69.1 76.8 76.2 83.7 Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Thereafter, the free cash flows are expected to grow at the industry average of 3.5% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.3%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $306 million, and 41 million shares outstanding, estimate its share price. a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ million. (Round to two decimal places.)

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