Common stocks issued by Meggitt Sensing Systems paid stockholder Common stocks issued by Meggitt…

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Common stocks issued by Meggitt Sensing Systems paid stockholder
Common stocks issued by Meggitt Sensing Systems paid stockholders $0.93 per share on an average price of $18.80 last year. The company expects to grow the dividend rate at a maximum of 1.5% per year. The stock volatility is 1.19, and other stocks in the same industry are paying an average of 4.95% per year dividend. U.S Treasury bills are returning 4.5%. Determine the company’s cost of equity capital last year using
(a) The dividend method
(b) The CAPM.

Common stocks issued by Meggitt Sensing Systems paid stockholder