Qusetion: Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: FCF($ million). Year 1=53.9 Yr. 2= 68.7 , Yr 3= 77.3, Yr 4=73.9, Yr 5= 80.2 After that, the free cash flows are expected to grow at the industry average of 3.5% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.7%:]=
a. Estimate the enterprise value of Heavy Metal. The enterprise value will be $ ________ million. (Round to two decimal places.)
b. If Heavy Metal has no excess cash, debt of $ 304 million, and 41 million shares outstanding, estimate its share price. The stock price per share will be_____ . (Round to two decimal places.)