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model to the firm's financial data that you've accumulated from a variety of data sources. The key values you have compiled are summarized in the
model to the firm's financial data that you've accumulated from a variety of data sources. The key values you have compiled are summarized in the following table, a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share. b. Judging by your finding in part a and the stock's offering price, should you buy the stock? c. On further analysis, you find that the growth rate in FCF beyond year 4 will be 6% rather than 5%. What effect would this finding have on your responses in parts a and b ? a. The value of CoolTech's entire company is $ (Round to the nearest dollar.) The value per share of CoolTech's common stock is $ (Round to the nearest cent.) b. On the basis of your finding in part a and the stock's offering price, should you buy the stock? (Select the best answer below.) Yes No c. If the growth rate in FCF beyond year 4 will be 6%, the value of CoolTech's entire company will be $ (Round to the nearest dollar.) The value per share of CoolTech's common stock is? (Round to the nearest cent.) On the basis of your finding in part c and the stock's offering price, should you buy the stock? (Select the best answer below.) A. Yes B. No model to the firm's financial data that you've accumulated from a variety of data sources. The key values you have compiled are summarized in the following table, a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share. b. Judging by your finding in part a and the stock's offering price, should you buy the stock? c. On further analysis, you find that the growth rate in FCF beyond year 4 will be 6% rather than 5%. What effect would this finding have on your responses in parts a and b ? a. The value of CoolTech's entire company is $ (Round to the nearest dollar.) The value per share of CoolTech's common stock is $ (Round to the nearest cent.) b. On the basis of your finding in part a and the stock's offering price, should you buy the stock? (Select the best answer below.) Yes No c. If the growth rate in FCF beyond year 4 will be 6%, the value of CoolTech's entire company will be $ (Round to the nearest dollar.) The value per share of CoolTech's common stock is? (Round to the nearest cent.) On the basis of your finding in part c and the stock's offering price, should you buy the stock? (Select the best answer below.) A. Yes B. No
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