2$) 3$) Heavy Metal Corporation is expected to generate the following free cash...
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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Thereafter, the free cash flows are expected to grow at the industry average of 3.5% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.5%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $304 million, and 35 million shares outstanding, estimate its share price. Data table a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ million. (Round to two decimal places.) (Click on the following icon e in order to copy its contents into a spreadsheet.) 1 2 3 4 5 Year FCF ($ million) 54.9 66.6 77.6 74.4 81.6 You notice that Coca-Cola has a stock price of $41.12 and EPS of $1.73. Its competitor PepsiCo has EPS of $3.58. But, Jones Soda, a small batch craft soda producer has a P/E ratio of 33.7. Based on this information, what is one estimate of the value of a share of PepsiCo stock? One share of PepsiCo stock is valued at $ (Round to the nearest cent.)
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