and you expect the firm's free cash flows to grow by 4.4% 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: 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 20%, the risk-free rate is 5.2%, and the expected return on the market portfolio is 11.4%. a. Estimate AMR's equity cost of capital. b. Estimate AMR's share price. Data table (Click on the following icon in order to copy its contents into a spreadsheet.)