part C please

Problem 4) (18 points) UNR corp. is planning to go public and it faces the problem of setting an appropriate price for the stock. As a financial analyst you are going to estimate an IPO price for the firm. You are given the following information about the firm. The firm recently reported $28,000 of sales, $8,000 of operating costs other than depreciation, and $1,200 of depreciation and amortization charges. It has $8,250 of outstanding bonds that carry a 8% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $4,500 to buy new fixed assets and to invest $1,750 in net operating working capital. a. How much free cash flow did the firm generate? b. An analyst estimates that the FCF should grow rapidly- at a rate of 10% per year- during years 1, 2, and 3; but after year 3, growth should be a constant 6% per year. Using free cash flow valuation model estimate the UNR corp's intrinsic per share price (IV=?). UNR corp's current debt is $15,000, short-term investment is $6,800, preferred stock is $5,300, and number of shares outstanding is 4,500. Assume UNR'S WACC is 14%. c. Assume that the firm decides your calculations in part b are correct and sets IPO price equal to your estimated intrinsic per share price in part (b) (e.g., IPO price = your result in Part b). Given investment bank spread is 6%, what is the proceed under-writer gives to the company? Assume the firm issued all shares outstanding (4,500 shares) on the IPO date