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please answer all 5 portions of question. neatly place answers for easy view. will rate , thanks! NUMIVUIN. Ulapci I TIVITWIN 6 of 8 (8

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please answer all 5 portions of question. neatly place answers for easy view.
will rate , thanks!
NUMIVUIN. Ulapci I TIVITWIN 6 of 8 (8 completo) HW Score: 74.2%, 5.94 of 8 pts Score: 0.5 of 1 pt P7-18 (similar to) Question Help Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $3.05 per share. Although you are very much interested in owing company, you are concerned about whether it is fairly priced To determine the value of the shares, you have decided to apply the free ashow valvation model to the firm's financial that you've accumulated from a variety of data sources The key a s you have compiled are summarized in the following table ! a. Use the free can now valuation mode to estimate CoolTech's common stock value per share b. Judging by your finding in part and the stor's offering price, should you buy the stock? c. On further anwysis, you find that the growth rate in FCF beyond 2023 will be 4% rather than 3% 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) Enter your answer in the answer box and then click Check Answer 5 Check Answer Clear Al 5 remaining parts to esti i Data Table he stock wth rat y is $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Free cash flow Year (t) FCF 2020 $650,000 2021 $790,000 2022 $870,000 2023 $960,000 Other data Growth rate of FCF, beyond 2023 to infinity = 3% Weighted average cost of capital = 14% Market value of all debt = $1,530,000 Market value of preferred stock = $610,000 Number of shares of common stock to be issued = 1,100,000 Print Done

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