Amarindo, Inc. (AMR), is a newly public firm with 8.0 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in the coming year to be $14.73 million, and you expect the firm's free cash flows to grow by 3.5% per year in subsequent yearsBecause 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 betaHowever, you do have beta data for UAL, another firm in the same industry: AMR has a much lower debt-equity ratio of 0.39which is expected to remain stable, and its debt is risk free. AMR's corporate tax rate is risk-free rate is 4.8% the expected retum on the market portfolio is 10.5%

UAL Equity Beta=1.95 Debt Beta= .39 Debt-Equity Ratio= 1.3

a. Estimate AMR's equity cost of capital. (Around to two decimal places)

b. Estimate AMR's share price .