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)
54.1 66.7 78.4 74.8 80.2
Thereafter, the free cash flows are expected to grow at the industry average of 3.7 % 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. b. If Heavy Metal has no excess cash, debt of $ 306 million, and 40 million shares outstanding, estimate its share price.