Question: Please use cell references to help me answer this question Problem 10-6 Complete the steps below using cell references to given data or previous calculations.

 Please use cell references to help me answer this question Problem

Please use cell references to help me answer this question

Problem 10-6 Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Heavy Metal Corporation is expected to generate the free cash flows in the table below over the next five years. 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%: 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. 1 2 3 4 5 Year Free Cash Flow (million) $ 53 $ 68 S 78 $ 75 $ 82 Growth rate Number of periods Average cost of capital 4% 5 14% a. Estimate the enterprise value of Heavy Metal. Cash flow in year 6 (million) Value in year 5 (million) Enterprise value (million) b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price. Excess cash (million) Debt (million) Number of shares (million) $ $ 300 40 Price per share Problem 10-6 Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Heavy Metal Corporation is expected to generate the free cash flows in the table below over the next five years. 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%: 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. 1 2 3 4 5 Year Free Cash Flow (million) $ 53 $ 68 S 78 $ 75 $ 82 Growth rate Number of periods Average cost of capital 4% 5 14% a. Estimate the enterprise value of Heavy Metal. Cash flow in year 6 (million) Value in year 5 (million) Enterprise value (million) b. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price. Excess cash (million) Debt (million) Number of shares (million) $ $ 300 40 Price per share

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