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 68 78 75 82 After 5 years, 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%: Estimate the enterprise value of Heavy Metal. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price.
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