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Using the free cash flow valuation model to price an IPO Personal Finance Problen Assume that you have an opportunity to buy the stock of

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Using the free cash flow valuation model to price an IPO Personal Finance Problen Assume that you have an opportunity to buy the stock of CoolTech, Inc, an IPO being offered for $12.50 per share. Although you are very much interested in owning the company, you are concerned about whether it is faily priced To determine the value of the shares, you have decided to apply the free cash flow valuation model to the firm's financial data that youve accumulated from ai variety of dafa sources. The key values you hare complied are summarized in the following lable, a. Use the free cash flow valuabon model to ostimate CoolTech's common stock vakue per share: b. Judging by your finding in part a and the stocks oflering price, should you buy the stock? c. On furthet analysis, you find that the growh rate in FCF beyond 2023 will be 3% rather than 2% What efloct would this finding have on your responses in parts a and b? a. The value of CoolTech's entire company is 5 (Round to the nearest dollar) Data table (Click on the icon here 1 in order to copy the contents of the data table below into a spreadsheet.)

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