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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:

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.

Terminal value $($millions$)$

Total cash flow $($millions$)$

a$.$ Estimate the enterprise value of Heavy Metal.

Enterprise value $($millions$)$

b$.$ If Heavy Metal has no excess cash, debt of $$300$ million, and $40$ million shares outstanding, estimate its share price.

Debt $($millions$)$

Number of shares $($millions$)$

Equity value $($millions$)$

Stock price