Heavy Metal Corporation is expected to generate the following free cash flows over the next...
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Accounting
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
3.6% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.8%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $289 million, and 45 million shares outstanding, estimate its share price.
