Amarindo, Inc. (AMR) is a newly public firm with 10 million shares outstanding. You are doing...

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Amarindo, Inc. (AMR) is a newly public firm with 10 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in the coming year to be $15 million, and you expect the firm's free cash flows to grow by 4% 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 assessment of AMR's equity beta. However, you do have beta data for UAL, another firm in the same industry: Equity Beta Debt Beta Debt-Equity Ratio UAL 1.75 .3 1 AMR has a much lower Debt-Equity ratio of 0.25, which is expected to remain stable, and its debt is risk free. AMR's corporate tax rate is 40%, the risk-free rate is 5%, and the expected return premium on the market is 6%. What is UAL's cost of equity? % do What is UAL's cost of debt? % What is UAL's unlevered cost of capital? Answer must be rounded up to two decimal places. % AMR's cost of equity is? Answer must be rounded up to two decimal places. % Estimate AMR's share price. Answer must be rounded up to two decimal places. Amarindo, Inc. (AMR) is a newly public firm with 10 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in the coming year to be $15 million, and you expect the firm's free cash flows to grow by 4% 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 assessment of AMR's equity beta. However, you do have beta data for UAL, another firm in the same industry: Equity Beta Debt Beta Debt-Equity Ratio UAL 1.75 .3 1 AMR has a much lower Debt-Equity ratio of 0.25, which is expected to remain stable, and its debt is risk free. AMR's corporate tax rate is 40%, the risk-free rate is 5%, and the expected return premium on the market is 6%. What is UAL's cost of equity? % do What is UAL's cost of debt? % What is UAL's unlevered cost of capital? Answer must be rounded up to two decimal places. % AMR's cost of equity is? Answer must be rounded up to two decimal places. % Estimate AMR's share price. Answer must be rounded up to two decimal places.