Heavy Metal Corporation is expected to generate the following free cash flows over the next five? years: Year 1 2 3 4 5 FCF? ($ million) 53.6 69.7 79.4 73.3 82.4 ?Thereafter, the free cash flows are expected to grow at the industry average of 3.9 % per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.4 %?:
a. Estimate the enterprise value of Heavy Metal.
b. If Heavy Metal has no excess? cash, debt of $ 301 ?million, and 42 million shares? outstanding, estimate its share price.