Could you please show all of your work as I am trying to understand the formulas? Also, if you could show how it would be done in EXCEL that would be incredibly helpful. Thank you so much!

Using the free cash flow valuation model to price an IPO Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $12.50 per share. Although you are very much interested in owning the company, you are con cerned about whether it is fairly priced. To determine the value of the shares, you have decided to apply the free cash flow valuation model to the firm's financial data that you've developed from a variety of data sources. The key values you have com piled are summarized in the following table Free cash flow Year (t) FCF Other data 2016 2017 2018 2019 $ 700,000 | Growth rate of FCF, beyond 20 19 to infinity-2% Weighted avera ge cost of capital-890 800,000 950,000Market value of all debt $2,700,000 | $1,000,000 Market value of preferred stock Number of shares of common stock outstanding 1,100,000 1,100,000 a. Use the free cash flow valuation model to estimate CoolTech's common stock b. Judging on the basis of your finding in part a and the stock's offering price, c. On further analysis, you find that the growth rate in FCF beyond 2019 will be value per share should you buy the stock? 3% rather than 2%. What effect would this finding have on your responses in parts a and b