Question: please answer C Using the free cash flow valuation model to price an IPO Personal Finance Problom Assume that you hawe an opportunity to buy

please answer C  please answer C Using the free cash flow valuation model to
price an IPO Personal Finance Problom Assume that you hawe an opportunity

Using the free cash flow valuation model to price an IPO Personal Finance Problom Assume that you hawe an opportunity to buy the stock of CoolTech, Inc, an IPO being offerod for $5.25 per share, Although you are very much interested in awning the company, you are concerned about whether it is fairly priced. To determine the value of the shares, you have decided to apply the froo cash flow valuation modol to the firm's financial data that you've accurnulated 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 estimale CoorToch's cornmon stock value per share. b. Judging by your finding in part a and the stock's oflering prico, should you buy the stock? c. On further analysis, you find that the growth rate in FCF boyond 2023 will be 5% rather than 4%. What effect would this finding have on your responses in parts a and b ? The value per share of CoolTech's common slock is : (Round to the nearest cent.) b. On the basis of your finding in part a and the stock's offoring price, should you buy the stock? (Select the best answer below) No Yes If the growth rate in FCF beyond 2023 will be 5%, the value of CoolTech's entire company will be s (Round to the nearest dollar.) Data table (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.)

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