Terence Mann is considering buying some shares of common stock of an initial public offering by NewAge Communications Corporation. The privately held company is going public by issuing 2 million new shares at $20 per share. Terence gathered the following information about NewAge: The required rate of return for Terence from a share of common stock for this type of company is 13 percent Compare the selling price of the stock with its value as obtained from different. valuation methods. Would you recommend that Terence buy the stock? 1. Book Value Approach: Book Value / # of Shares 2. Liquidation Value Approach: Liquidation Value I # of Shares 3. Replacement Value Approach: Replacement Value / # of Shares4. Dividend Growth Model: D1/(r-g)