Using the Free Cash Flow Valuation Model to price an IPO: Assume you have the opportunity to buy the stock of Cool Tech, Inc. an IPO being offered for $10.50 per share. Although you are interested in owning the company, you are concerned about whether it is fairly priced. To determine the value of the shares you have decided to apply the free cash flow valuation model to the financial data on the company that you have been able to obtain from various sources. (5 points) Financial Data Developed: Year 1 2 Free Cash Flow $450,000 $600,000 $700,000 $850,000 Growth rate after year 4: 3% WACC: 10% Value of Debt: $2,500,000 Value of Preferred stock: $650,000 Number of Outstanding Shares: 750,000 3 4 A. Using Free Cash Flow model estimate the fair value of the firm's common stock. B. Based on the offering price and the estimated value, should you purchase the stock