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Amarindo, Inc. (AMR), is a newly public firm with 100 milion shares outstanding. You are doing a valuation analysis of AMR. You stimato its tro

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Amarindo, Inc. (AMR), is a newly public firm with 100 milion shares outstanding. You are doing a valuation analysis of AMR. You stimato its tro cash flow in the coming year to be $15.00 million, and you expect the firm's free cash flows to grow by 4.0% 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 form in the same industry: AMR has a much lower debt-equity ratio of 0.30, which is expected to remain stable, and its debtis risk free AMR's corporate tax rate is 40%, the risk-free rate is 50%, and the expected return on the market portfolio is 110% a. Estimate AMR's equity cost of capital b. Estimate AMR's share price a. Estimate AMR's equity cost of capital The equity cost of capital is % (Round to two decimal places) b. Estimate AMR's share price The share price is (Round to the nearest cont.) with 10.0 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in nge fc Data table - x bebte folio is (Click on the following icon in order to copy its contents into a spreadsheet.) Equity Beta 1.50 Debt Beta 0.30 Debt-Equity Ratio 1.0 UAL Print Done

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