1. Stock in Country Road Industries has a beta of while T-bills are currently yielding 2.5 percent. Country Road's last dividend was $1.55 per share and dividends are expected to grow at an annual rate of 4.5 percent indefinitely. The stock sells for $26a share. What is the estimated cost of equity using the average return of the CAPM and the dividend discount model? 1.46. The market risk premium is 7.5 percent