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Mathematics, 06.10.2021 08:30 kdobi

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) 53.7 67.3 78.9 75.6 81.3

Thereafter, the free cash flows are expected to grow at the industry average of 4.3% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.9%:
a. Estimate the enterprise value of Heavy Metal.
b. If Heavy Metal has no excess cash, debt of $313 million, and 45 million shares outstanding, estimate its share price.

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