Reference no: EM131669294
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 the? firm'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 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 2.10 0.42 1.4
AMR has a much lower? debt-equity ratio of 0.42?, which is expected to remain? stable, and its debt is risk free.? AMR's corporate tax rate is 35?%, the? risk-free rate is 5.1?%, and the expected return on the market portfolio is 11.3%.
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 decimal? places.)
|
What possible issues could contribute to his symptoms
: What possible issues could contribute to his symptoms? (arthritis) What would your treatment plan be? For medications, include dosages and schedules.
|
|
Write a report on the significance of patient safety
: In this assignment you will write a report on the significance of patient safety and the impact of organizational culture on quality and safety initiatives.
|
|
After-tax cost of capital for debt financing
: Great Seneca Inc. sells $100 million worth of 13-year to maturity 11.39% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $973.
|
|
Evaluate different aspects of organizational change
: Evaluate different aspects of organizational change. Discuss the role that leader vision and organizational climate plays in a change management strategy.
|
|
Expected return on the market portfolio
: AMR's corporate tax rate is 35?%, the? risk-free rate is 5.1?%, and the expected return on the market portfolio is 11.3%.
|
|
Write the equation for the exponential function
: Consider a decision maker who is comfortable with an investment decision that has a 50 percent chance of earning $25,000 and a 50 percent chance of losing.
|
|
Describe the emergency room nurse career dreams
: What are the key differences between emergency room nurse career dreams/aspirations and their actual experience in the practice?
|
|
What is the profitability index
: A project has an initial outlay of $1,839. It has a single payoff at the end of year 5 of $6,039. What is the profitability index (PI) of the project
|
|
What was the annual percentage increase in the winner
: In 1900, the first Green Jacket Golf Championship was held. The winner's prize money was $200. In 2015, the winner's check was $1,540,000.
|