Question: i need a, b, and c please Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that you have
Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that you have an opportunity fo buy the stock of Coolfech, Inci, an IPO boing offered for $9.43 per share. Although you are very much interested in owning the oompany, you are concemed about whother it is fairy priced. To defermine 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 variefy of data sources. The key values you have complled are summarized in the following table, a. Use the froo 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 year 4 will be 7% rather than 6%. What effect would this finding have on your responses in parts a and b? a. The value of Cooltech's entire company is $ (Round to the nearest dotlar.) Data table (Click on the icon here a in order to copy the contents of the data table below into a spreadsheec)
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