- Heavy Metal Corporation Is Expected To Generate The Following Free Cash Flows Over The Next Five Years 1 2 3 4 5 Year F 1 (16.59 KiB) Viewed 113 times
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: 1 2 3 4 5 Year FCF ($ million) 52.9 67.6 79.6 73.9 81.4 Thereafter, 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 13.4%: a. Estimate the enterprise value of Heavy Metal. b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price. CER a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $million (Round to two decimal places.)