Question

answer A and B?

Me Remaining! 02:28:03 Submit Quiz This Question: 1 pt 2 of 10 (1 complete) This Quiz: 10 pts possible Heavy Metal Corporation is expected to generate the following free cash flows over the next five ye Year FCF (5 million) 532 68.7 76.4 75.3 83.6 Thereafter, the free cash flows are expected to grow at the industry average of 4.5% 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 $315 million, and 38 million shares outstanding, estimate its share price a. Estimate the enterprise value of Heavy Metal Estimate the enterprise value of Heavy Metal The enterprise value will be million. (Round to two decimal places.) b. If Heavy Metal has no excess cash, debt of $315 million, and 38 million shares outstanding, estimate its share price The stock price per share will be $ (Round to the nearest cent) 3 Enter your answer in each of the answer boxes. Me over then Thereafter Please com PowerPoint 2016 Career Services George Business Cards

Answer 1

a. The enterprise value will be$ 73.

calculation as follows:

53.2+68.7+76.4+75.3+83.6=357.2

357.2/5=71.44

and question it is mentioned it should be round off to 2 decimal. So, the answer will be 73.

b.315+38=353

353*100/4.5=7844.44

7844.44/353=22%