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

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Heavy Metal Corporation is expected to generate the followingfree cash flows over the next five? years: Year 1 2 3 4 5 FCF? ($million) 51.7 66.4 76.7 76.5 82.4 ?Thereafter, the free cash flowsare expected to grow at the industry average of 4.3 % per year.Using the discounted free cash flow model and a weighted averagecost of capital of 13.2 %?: a.??Estimate the enterprise value ofHeavy Metal. b.??If Heavy Metal has no excess? cash, debt of $ 310?million, and 40 million shares? outstanding, estimate its shareprice.

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aEnterprise value of Heavy Metal Firms Enterprise value is the Present Value of the Free Cash Flows plus the Present Value of Terminal Value Terminal Value TV FCF51 g Ke g 8240 Million1 00430 01320 See Answer

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Heavy Metal Corporation is expected to generate the followingfree cash flows over the next five? years: Year 1 2 3 4 5 FCF? ($million) 51.7 66.4 76.7 76.5 82.4 ?Thereafter, the free cash flowsare expected to grow at the industry average of 4.3 % per year.Using the discounted free cash flow model and a weighted averagecost of capital of 13.2 %?: a.??Estimate the enterprise value ofHeavy Metal. b.??If Heavy Metal has no excess? cash, debt of $ 310?million, and 40 million shares? outstanding, estimate its shareprice.