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Nielson Motors (NM) is a newly public firm with 25 million shares outstanding. You are doing a valuation analysis of Nielson and you estimate its

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Nielson Motors (NM) is a newly public firm with 25 million shares outstanding. You are doing a valuation analysis of Nielson and you estimate its free cash flow to firm in the coming year (year 1) to be $40 million. You expect the firm's free cash flows to grow by 4% per year in subsequent years forever. Because the firm has only been listed on the stock exchange for a short time, you do not have an accurate assessment of Nielson's equity beta. However, you do have the following data for another firm in the same industry: Nielson has a much lower debt-equity ratio of 0.5, which is expected to remain stable, and Nielson's debt is risk free. Nielson's corporate tax rate is 40%, the risk-free rate is 5%, and the expected return on the market portfolio is 10% Required: Nielson's estimated asset beta is : (provide your answer with two decimal places. For example, 1.23) Nielson's estimated equity beta is: (provide your answer with two decimal places. For example, 1.23) Using the normal CAPM, you estimate Nielson's cost of equity to be: \%. (provide your answer as a percentage with two decimal places. For example, 1.23 for 1.23% ) Nielson's share price is: $ . (provide your answer with two decimal places. For example, 1.23)

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