5. Kenneth McCoin is valuing McInish Corporation and performing a sensitivity analysis on his valuation. He sues a single-stage FCFE growth model. The base-case values for each of the parameters in the model are given, together with possible low and high estimates for each variable, in the following table.

Variable	Base-Case Value	Low Estimate	High Estimate
Normalized FCFF0	$0.88	$0.70	$1.14
Risk-free rate	5.08%	5.00%	5.20%
Equity risk premium	5.50%	4.50%	6.50%
Beta	0.70	0.60	0.80
FCFE growth rate	6.40%	4.00%	7.00%

a.Use the base-case values to estimate the current value of McInish Corporation.

b.Calculate the range of stock prices that would occur if the base case value for FCFE0 were replaced by low estimate and high estimate for FCFE0. Similarly, using the base case values for all other variables, calculate the range of stock prices caused by using the low and high values for beta, the risk-free rate, the equity risk premium, and the growth rate. Based on these ranges, rank the sensitivity of the stock price to each of the five variables.