Heavy Metal Corporation is expected to generate the following free cash flows o

Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Year 1 2 3 4 5 FCF ($ millions) 53 68 78 75 82 After then the free cash flows are expected to grow at the industry average of 4% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14%: 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.

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