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Heavy Metal Corporation is expected to generate the following free cash flows over the next five​...

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) 51.9 68.7 77.3 73.9 80.6 ​Thereafter, the free cash flows are expected to grow at the industry average of 4.2 % per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.4 %​: a.  Estimate the enterprise value of Heavy Metal. b.  If Heavy Metal has no excess​ cash, debt of $ 298 ​million, and 35 million shares​ outstanding, estimate its share price. a.  Estimate the enterprise value of Heavy Metal. The enterprise value will be

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Cash flows Present value Year pv@14.4% $51.90 $45.37 1 0.8741 $68.70 $52.49 2 0.7641 $77.30 $51.63 3 0.6679 $73.90 $43.15 4 0

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