Amariendo, Inc. is a newly public firm with 11.5 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in the coming year to be 14.92 million, and you expect the firms free cash flows to grow by 4.2% per year in subsequent years. Because the firm has only been listed on the stock exchange for a short time, you do not have an accurate assessment of AMR's equity beta. However, you do have beta data for UAL, another firm in the same industry. AMR has a much lower debt-equity ratio of 1.39, which is expected to remain stable, and its debt is risk-free, AMRCorporate tax rate is 35%, the risk-free rate is 5.5% and expected return on the market portfolio's is 11%.

UAL Equity Beta=1.95 Debt Beta=0.39 Debt-Equity Beta= 1.3

a. Estimate AMR 's equity cost of capital

compute UAL's asset beta

b.Estimate AMR's share price

Can you please do a step by step simplified