Kenneth McCoin is valuing McInish Corporation and performing a sensitivity analysis on his valuation. He uses a single - stage FCFE growth model. The base - case values for each of the parameters in the model are given, together with possible low and high estimates for each variable, in the following table.

A. Use the base - case values to estimate the current value of McInish Corporation.
B. Calculate the range of stock prices that would occur if the base - case value for FCFE₀ were replaced by the low estimate and the high estimate for FCFE₀. Similarly, using the base - case values for all other variables, calculate the range of stock prices caused by using the low and high values for beta, the risk - free rate, the equity risk premium, and the growth rate. Based on these ranges, rank the sensitivity of the stock price to each of the five variables.

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High Estimate $1.14 Low Estimate $0.70 Variable Base-Case Value Normalized FCFE, Risk-free rate $0.88 5.20% 5.08% 5.00% Equity risk premium 5.50% 4.50% 6.50% Beta 0.70 0.60 0.80 FCFE growth rate 6.40% 4.00% 7.00%