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Business, 26.08.2019 16:30 gandalfhan

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 in the coming year to be $40 million. 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 nielsen's equity beta. however, you do have the following data for another firm in the same industry: equity beta debt beta debt-equity ratio 1.8 0.4 1.5 nielson has a much lower debt-equity ratio of .5, which is expected to remain stable, and nielsen'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%. nielson's estimated equity beta is closest to:

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