Finance Assignment | Professional Writing
Homework: Chapter 7 Homework Save Score: 0 of 1 pt of 85 completo HW Score: 45.83 %, 3.67 of 8 pts P7-18 (similar to) E Question Help Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for 57.26 per share. Although you are very much interested in owning the company, you are concerned about whether it is fairly priced. To determine the value of the shares. you have decided to apply the tree cash flow valuation model to the firm’s financial data that you’ve accumulated from a variety of data sources. The key values you have compiled are summarized in the following Use the free cash flow valuation model to estimate CooTech’s common stock value per share
b. Judging by your finding in parts and the stock’s offering price, should you buy the stock? c. On further analysis, you find that the growth rate in FCF beyond 2023 will be rather than what otect would this finding have on your responses in parts and b? The value of CoolTech’s entire company is $ (Round to the nearest dollar) Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Free cash flow Year (0) FCF 2020 $689 000 2021 5790.000 S850 000 2023 $1,000,000 Other data Growth rate of FCF beyond 2023 to infinity 5% Weighted average cost of capital 13% Market value of all det $2.100,000 Market value of preferred stock $340.000 Number of shares of common stock to be issund Enter your answer in the ans 2022 1,100,000 Check Answer remaining
Get Finance homework help today