7-5: Top management staff wants to determine the value of the entire company and the value of its common stock in preparation for an initial public offering (IPO). Use the free cash flow (FCF) method evaluation and the following data to compute value. The FCF growth rate from 2020 forward to infinity is expected to be a constant 3.5%. The weighted average cost of capital, ra, is 10%. Market value of all debt is $4,550,000. Market value of preferred stock is $900,000. Number of shares of common stock outstanding: 500,000. Free cash flows (FCF) by year-end: 2016 at $500,000; 2017 at $550,000; 2018 at $610,000; 2019 at $670,000; 2020 at $700,000. (A) Compute the value of the entire company. (B) Compute the value per share of the company's common stock. 7-6: Your company has an expected price/earnings multiple of 14.1 and earnings per share of $3.25. Calculate the estimated price per share of the company's stock