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Amarindo, Inc. (AMR), is a newy public firm with 8.5 millon shares outstanding. You are doing a valuation analysis of AMR. You es6mate is free

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Amarindo, Inc. (AMR), is a newy public firm with 8.5 millon shares outstanding. You are doing a valuation analysis of AMR. You es6mate is free cash fow in the coming year to be $14.7 ? milion, and you expect the firms 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 acourate assessmen or A.MRs equify beta. However, you do have bela data for UAL, another firm in the same industry: AMR has a much iower debt-equity ratio or 0.39, which is expected to remain stable, and is debt is risk free. AMPs comporate tax rate is 20%, the risk.free rate is 4.8%, and the expected roturn on the market portololo is 11.4%. a. Estmate AMR's couity cost of caplal. b. Estmale AMR's share price a. Eutmate AMRS equby cost of captay The equay cost of captar is Data table (Cick on the folowing icon 8 in order to copy its contents into a spreadsheet.)

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