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, locom IPO being offered for $3.79 per share. Although you are very much interested in owning the company, you are concerned about whether it is tally 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 you've accumulated troma vanalyel data sources. The key values you have compiled are summarized in the following table, a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share b. Judging by your finding in part a and the stock's offering price, should you buy the stock c. On further analysis, you find that the growth rate in FCF beyond 2023 will be 5% rather than 4% What effect would this finding have on your memes in patua and b? a. The value of CoolTech's entire company is $(Round to the nearest dollar) The value per share of CoolTech's common stock is $ (Round to the nearest cont.) b. On the basis of your finding in part a and the stock's offering price, should you buy the stock? (Select the best umwer below) Yes No c. If the growth rate in FCF beyond 2023 will be 5% the value of CoolTech's entire company will be 5 Round to the nearest doar The value per share of CoolTech's common stock is 5 (Round to the nearest cent) On the basis of your finding in partc and the stocks offering price should you buy the stock Select the best answer below . No Click to select your answers) your student email addres sand password a HA analysis, you Data Table of CoolTec (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) share of sis of your Free cash flow Year (t) FCF 2020 $670,000 2021 $800,000 2022 $900.000 2023 $1,030,000 Other data Growth rate of FCF beyond 2023 to infinity = 4% Weighted average cost of capital = 14% Market value of all debt = $1,750,000 Market value of preferred stock = $700.000 Number of shares of common stock to be issued = 1,100,000 th rate in Fd er share of a Print Done of your find! ct your answer(s) Sign with your work or school your student email addres sand password **