Amarindo, Inc. (AMR) is a newly public firm with 8.0 million shares outstanding. You are doing a valuation analysis of AMR You estimato its free cash flow in the coming year to be $15.31 million, and you expect the firm's free cash flows to grow by 3.7% 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 dato for UAL, another firm in the same industry. AMR has a much lower debt-equity ratio of 0.24, which is expected to remain stable, and its debt is risk free. AMR's corporate tax rate is 25% the risk free rate is 5.4%, and the expected return on the market portfolio is 11.3% 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 11.06% (Round to two decimal places) b. Estimate AMR's share price The share price is $257.17. (Round to the nearest cent.) a Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Equity Beta 1.20 Debt Beta 0.24 Debt-Equity Ratio 0.8 UAL Print Done Amarindo, Inc. (AMR) is a newly public firm with 8.0 million shares outstanding. You are doing a valuation analysis of AMR You estimato its free cash flow in the coming year to be $15.31 million, and you expect the firm's free cash flows to grow by 3.7% 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 dato for UAL, another firm in the same industry. AMR has a much lower debt-equity ratio of 0.24, which is expected to remain stable, and its debt is risk free. AMR's corporate tax rate is 25% the risk free rate is 5.4%, and the expected return on the market portfolio is 11.3% 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 11.06% (Round to two decimal places) b. Estimate AMR's share price The share price is $257.17. (Round to the nearest cent.) a Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Equity Beta 1.20 Debt Beta 0.24 Debt-Equity Ratio 0.8 UAL Print Done