ARI Compamy has decided to sell some portion of its shares to public via IPO. The company reported the financial information below for this year.

Operating Income : 132 000 000 TL

Depreciation and Amortization : 25 000 000 TL

Capital Expenditure : 48 000 000 TL

Increase in Non Cash Net Working Capital : 30 600 000 TL

Corporate Tax Rate: %20

Free Cash Flows to Firm are expected to grow %18 in the first year, % 20 in the second year,

%14 in the third year, %12 in the fourth year and %10 in the fifth year. From the 5th year, the terminal growth rate is %6.

The unlevered beta of ARI Corporation is 0.55 and D/E Ratio is %150.

The company has long term corporate bonds in TL traded in secondary markets paying %14 annual coupon interest and carrying a yield to maturity %21

Total shares: 120 000 000. Short Term Financal Debt : 46 000 000 TL. Long Term Financial Debt: 26 000 000 TL. Cash and Near Cash : 32 000 0000 TL

You will estimate (compute) cost of capital by your own using logical numbers and justify the reason why you use these numbers.

Find the fair equity value per share of ARI company for initial public offerring.