Using the free cash flow valuation model to price an IPO Personal Fice PollenAssume that you have an opportunity to buy the stock of Cooltech, Inc. an IPO being thered for S4 57 per share. Although you are very much interested in owning the company, you we concerned about whether it is taily priced To determine the value of the shares you have decided to apply the the cash flow wakation model to the firm's financial data that youve accurated from varity of data sources The key wes you have complied marted in the following ati Viete te cash flow auto mode to estimate Collechis common stock valo pet share b. Judging by you finding a part in the shocking place should you buy the ock? c. Ostanberras. you find that the grouth tate in Fof borond 2023 Wabe Sither than what efect would findey have your comes in partea and b? The value of Coolfech's entire company a 3 (Round to the nearest dollar Data Table (Click on the content to copy the contents of data wito spreadsheet Free cash flow Year FCF Other data 2020 5720000 Growth rate of FC beyond 202 to 2 2021 3830.000 Weighted average cost of capital - 135 2022 $915.000 Mantafa 51550 000 2023 51040.000 Market value of pored stock 5620.000 Number of shares d. 10.000 Print Done 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 Inc an IPO boing offered for 54 57 per share. Although you are very much 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 firm's financial data that you've accumulated from a variety of 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 3% rather than 2% What effect would this finding have on your responses in parts a and by a. The value of CoolTech's entire company is $ (Round to the nearest dollar) Data Table (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet) Free cash flow Year (0) FCR 2020 S720,000 2021 $830,000 2022 $910 000 2023 $1.040,000 Other data Growth rate of FCF beyond 2023 to infinity 2% Weighted average cost of capital -14% Market value of al debt51.550.000 Market value of preferred stock=5620,000 Number of shares of common stock to be issued 1.100.000 Enter your answer in the 5 Print Done remaining