Need ASAP

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 $14.79 million, and you expect thefirm's free cash flows to grow by 4.2% per year in subsequent years. Because the firm has only been listed on the stock exchange for a shorttime, you do not have an accurate assessment ofAMR's equity beta.However, you do have beta data forUAL, another firm in the sameindustry:

Equity Beta Debt Beta Debt Equity Ratio

UAL 2.10 0.42 1.4

.

AMR has a much lowerdebt-equity ratio of 0.42, which is expected to remainstable, and its debt is risk free.AMR's corporate tax rate is 35%, therisk-free rate is 5.1%, and the expected return on the market portfolio is 11.3%.

a. EstimateAMR's equity cost of capital.

b. EstimateAMR's share price.

a. EstimateAMR's equity cost of capital.

The equity cost of capital is _____%. (Round to two decimalplaces.)