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complete both parts OSLO PISO Question Help Amarino, Inc. (AMR), in a newly public firm with 0.0 million shares outstanding. You are doing a valuation

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OSLO PISO Question Help Amarino, Inc. (AMR), in a newly public firm with 0.0 million shares outstanding. You are doing a valuation analysis of AMR You estimate its free cash flow in the coming year to be $1453 milion, and you expect the tems from cath flows to grow by 4.1% per year in subsequent years. Because the firm has only beensted on the stock exchange for a short time, you do not have an accurate assessment of AMR's quity beta However, you do have beta data for UAL, another firm in the same industry AMR has a much lower debt equity ratio of 0.27, which is expected to remain stable, and its debt is rinkfren. AMR's corporate tax rate 30%, the risk rose is 4.8%, and the expected return on the market portfolio is 100% a. Evim AMR's equity cost of capital b. Estimate AMR's share prio . Estimare AMR's equity cost of capital The study cont of capital in %. Round to two decimal places) D. ENIM AMR Share price The store pricesRound to the nearest cent) Amarindo, Inc. (AMR), is a newly public firm with 9.0 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in the coming year to be $14. firm's free cash flows to grow by 4.1% 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 assess However, you do have bete data for UAL, another firm in the same industry AMR has a much lower debl-equity ratio of 0.27, which is expected to remain stable, and its debt is risk is 30%, the risk-free rate is 4.8%, and the expected return on the market portfoto is 10.6% 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 decine b. Estimate AMR's share price. Data Table The share price is $(Round to the nearest cont.) (Click on the icon located on the top right comer of the datatable below in order to copy its contents into a spreadshot) Equity Beta Debt Beta Debt-Equity Ratio e UAL 1.35 0.27 0.9 Print Done

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