Using the free eash flow valuation model to price an IPO Penional Finance Problem Assume that you have an opporturity lo buy the stock of CoolTech, ine, an IPO being offered for \$4.55 per share. Atheugh you are vey much interesind in owning the company, you are concerned about whether it is faity priped. To dhtermine the value of the shares, you have decided to opply the free cash fow valuasion mode to the firm's firancial data that youve acoumdated from a varioty of data sourcei. The key values you have campiled are sumarized in the fallowing table. b. Jusjing by your finding in part a and the slock's afierip price, should you buy be stock? c. On further ansyyis. you Ind that the growth rate in FCF beyond year 4 will be 5% rather than 4%. What otfect would this finding have on your responses in parts a and b? 2. The value of Cooltectiv entie company is I (Reund to the nearest dolar.) Using the free cash flow valuation model to peice an BPO Personal Finance Problem Assume that you have an opportunity to buy the stock of CoolToch, inc, an IPO being offered for $4.55 per share. Athough you are very moch interested in owming the compary, you are cenoemed about whether it in faily priced. To delermine the value of the shares, you have decided to apply the free cash flow valuation model to the firmis trancial data that youtve socumulated from a valiety of data sourcet. The key values you have complisd are nummanized in the folowing table. a. Use the free cash fow valuation model to estimble Conifectis common stock value per oharo. b. Judging by yout finding in pat a and the stocks offering price, thould you buy the stock? e. On further analywis, you find that the growth rate in FCF beyend year 4 wit be 5% nther than 4W. What ellect would this fridiog have on your resporises in parts a and b? a. The vilue of Cooffechis entre compary is ? (Round to the nearest dolat) Using the free eash flow valuation model to price an IPO Penional Finance Problem Assume that you have an opporturity lo buy the stock of CoolTech, ine, an IPO being offered for \$4.55 per share. Atheugh you are vey much interesind in owning the company, you are concerned about whether it is faity priped. To dhtermine the value of the shares, you have decided to opply the free cash fow valuasion mode to the firm's firancial data that youve acoumdated from a varioty of data sourcei. The key values you have campiled are sumarized in the fallowing table. b. Jusjing by your finding in part a and the slock's afierip price, should you buy be stock? c. On further ansyyis. you Ind that the growth rate in FCF beyond year 4 will be 5% rather than 4%. What otfect would this finding have on your responses in parts a and b? 2. The value of Cooltectiv entie company is I (Reund to the nearest dolar.) Using the free cash flow valuation model to peice an BPO Personal Finance Problem Assume that you have an opportunity to buy the stock of CoolToch, inc, an IPO being offered for $4.55 per share. Athough you are very moch interested in owming the compary, you are cenoemed about whether it in faily priced. To delermine the value of the shares, you have decided to apply the free cash flow valuation model to the firmis trancial data that youtve socumulated from a valiety of data sourcet. The key values you have complisd are nummanized in the folowing table. a. Use the free cash fow valuation model to estimble Conifectis common stock value per oharo. b. Judging by yout finding in pat a and the stocks offering price, thould you buy the stock? e. On further analywis, you find that the growth rate in FCF beyend year 4 wit be 5% nther than 4W. What ellect would this fridiog have on your resporises in parts a and b? a. The vilue of Cooffechis entre compary is ? (Round to the nearest dolat)