USE EXCEL TO SOLVE. Ignatius Industries is considering going public but is still determining a fair offering price

for the company. Before hiring an investment banker to assist in making the public

offering, managers at Ignatius have decided to make their own estimate of the firm's

common stock value. The firm's CFO has gathered data for valuating using the free cash

flow valuation model.

The firm's weighted average cost of capital is $12\%,$ and it has $$1,500,000$ of debt at market

value and $$550,000$ of preferred stock at its assumed market value. The estimated free cash

flows over the next $5$ year, $2024$ through $2028,$ are given below. Beyond $2028$ to infinity, the

firm expects its free cash flow to grow by $3\%$ annually.

a$.$ Estimate the value of Ignatius Industries' entire company by using the free cash flow valuation

model.

b$.$ Use your finding in part a$,$ along with the data provided above, to find Ignatius Industries'

common stock value.

c$.$ If the firm plans to issue $100,000$ shares of common stock, what is its estimated value per

share?