B&C is planning to go public and it faces the problem of setting an appropriate price for the stock. The company and investment bank believe that the proper procedure is to conduct a valuation and select several firms with publicly traded common stock and to make relevant comparisons. Similar (comparable) companies are Abercrombe and Gunter Abercrombe Gunter B&C company data shares outstanding price per shane earnings per share free cash flow per share book value per share total assets total debt 5 million 10 million 0.5 million $35 2.2 $47 3.13 NA 2.6 1.63 2.54 16 115 M 35 M 20 250 M 50 M 18 11 M 2 M a) B&C anticipates the following free cash flows over the next 5 years. Year FCF IM 1.05M 1.208M 1.329M 1462M After year 5, free cash flow growth will be stable at 7% per year. B&C current WACC is 12%. Using free cash flow valuation model estimate the B&C's intrinsic value of equity and intrinsic per share price. b) Calculate debt to total assets, P/E, market to book, P/FCF, and ROE for the Abercrombe, Gunter and B&C. Proxy B&C price with your findings from part a Using Abercrome's and Gunter's P/E, Market to book, and P/FCF ratios, calculate the range of prices for B&C's stock that would be consistent with these ratios. Compare your prices to your result from part a. c)