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Homework answers / question archive / If I were to solve for the tax rate given this information, how would I solve for it? Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Years1 2 3 4 5 FCF ($ millions)53 68 78 75 82 (Respectively)
If I were to solve for the tax rate given this information, how would I solve for it?
Heavy Metal Corporation is expected to generate the following free cash flows over the next five years: Years1 2 3 4 5 FCF ($ millions)53 68 78 75 82 (Respectively). 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.
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