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could u help me 2. (30 points) Flintstone HotTubs is a fast growing startup...

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could u help me

2. (30 points) Flintstone HotTubs is a fast growing startup renting granite hot tubs for late night house parties. Last year, the Company had: - revenues of $250,000, - cost of goods sold (including depreciation that was 2% of revenue) of $35,000, - operating expenses of $150,000 - capital expenditures that were 2% of revenue, and - no change in net working capital. Assume a tax rate of 35%. The Company just hired a new employee at a salary of $40,000 and expects a stable operating margin going forward. i. What was the Company's free cash flow last year? ii. The Company expects to grow revenues at 15% per year for the next three years, 8% for the next two years, and then settle into a stable revenue growth rate of 3% per year. Assuming a discount rate of 10%, provide a valuation of the company. Be explicit about any assumptions you are making. iii. A DCF is a called a "bottom-up" valuation because it models the specific characteristics of a company. What information would you collect in order to perform a "top-down" valuation of the Company

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