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You are trying to estimate the share price for Heavyweight inc. Heavyweight currently has 40 million shares outstanding, a cost or equily of 20%, a

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You are trying to estimate the share price for Heavyweight inc. Heavyweight currently has 40 million shares outstanding, a cost or equily of 20%, a cost of debt of 5%, and a marginal tax rate of 20%. The firm has no excess cash and maintains a debt-to-enterprise value raso of 55%. It is expected to generate free cash fiows of $150 milion at the end of the year and free cash flows are expected to grow at an aninual rate of 2% in perpetuity. Given this information, and using the WACC method, what is the best estimate for Hearymeights share price? Select one. 518.34 if 59731 III. $22.42 N. $16.49

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