Estimate the enterprise value of heavy metal

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Heavy Metal Corporation is expected to generate the following free cash flows over the next five? years:Year23451

FCF? ($ million) 53.8 69.6 78.4 73.5 80.1

After? that, 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 13.7%?:

a. 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 $297 ?million, and 38 million shares? outstanding, estimate its share price?

Reference no: EM132643834

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