For this week's Critical Thinking assignment, we will be utilizing the Free Cash Flow Valuation Model to identify the value of Colorado Inc. per share.

Colorado Inc. is a privately held developer of advanced security systems based in Denver, CO. As part of your business development strategy, in late 2019, you initiated discussions with Colorado Incs founder about the possibility of acquiring the business. Estimate the value of Colorado Inc per share using a discounted FCF approach and the following data:

• Debt: $30 Million
• Excess Cash: $110 Million
• Shares Outstanding: 50 Million
• Expected FCF in 2020: $45 Million
• Expected FCF in 2021: $50 Million
• Future FCF growth rate beyond 2021: 5%
• Weighted-average cost of capital: 9.4%

After identifying the value of Colorado Inc per share, explain at least 3 additional factors you would look to consider in the possibility of acquiring the business and why.