**Please chose the correct answer for each question ( no need for explanation of the answer)

1. What is the value of the free cash flow from the end of year 4 to infinity?

1. 1,466,270.25
2. 1,569,100.23
3. 1,520,000.00

2. What is the present value of the company's cash flow?

1. 1,278,375
2. 1,434,787.57
3. 1,114,692.61

3. What is the total value of the common stock?

1. 327,678.12
2. 344,567.12
3. 364,692.61

4. How much is the value of the stock per share?

1. 3.65
2. 4.23
3. 5.68

University of Technology Bahrain A company intends to use a free cash flow valuation method for a company to be offered through an IPO. The key values provided are as follows; Year 1 2 Free Cash Flow 50,000.00 60,000.00 79,000.00 80,000.00 3 4 8% 300,000.00 growth rate Market Value of Debt Market Value of Preferred stock # of stocks cost of capital 450,000.00 100,000.00 12% University of Technology Bahrain A company intends to use a free cash flow valuation method for a company to be offered through an IPO. The key values provided are as follows; Year 1 2 Free Cash Flow 50,000.00 60,000.00 79,000.00 80,000.00 3 4 8% 300,000.00 growth rate Market Value of Debt Market Value of Preferred stock # of stocks cost of capital 450,000.00 100,000.00 12%