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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:
Â
|
Year |
1 |
2 |
3 |
4 |
5 |
|
FCF ($millions) |
53 |
68 |
78 |
75 |
82 |
Â
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%:
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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