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FINC 301 B17/17 3:54 PM Homework: Chapter 7 Stock Valuation (HW 7 of 8 (a complete) Score: 0 of 1 pt HW Score: 87.596, 7

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FINC 301 B17/17 3:54 PM Homework: Chapter 7 Stock Valuation (HW 7 of 8 (a complete) Score: 0 of 1 pt HW Score: 87.596, 7 of 8 pt x P7-17 (similar to a Question Help Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that is tehe end of year 2015 and you have an opportunity to buy the stock of CooTech, Inc., an IPO being offered for $1.4 per share. Although you are very much interested in owning the company, you are conoemed about whether tis 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 compiled are summarized in the following table, a. Use the free cash flow valuaton model to estimateCoolTech's common stock value per share. Judging on the basis of yourfinding in part a and the stocks offering price should you buy the stock? con further analysis, you ind that the growth rate in FCF beyond 2019 wilbe 3% ratherthan 2%What effect would this finding have on your responses in parts a and b? a. The value of CoolTech's entire company is s (Round to the nearest dollar) Enter your answer in the answer box and then click Check

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