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2. The Go-Blue Company has common stock outstanding that has a current price of $20 per share and the most recent dividend $1.50/share. GO-Blue's dividends

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2. The Go-Blue Company has common stock outstanding that has a current price of $20 per share and the most recent dividend $1.50/share. GO-Blue's dividends are expected to grow at a rate of 5% per year, forever. The expected risk-free rate of interest is 4%, and the expected market Risk premium is 8%. The beta on Go Blue 's stock is 1.2. a. What is the cost of equity for Go-Blue using the constant dividend growth model? b. What is the cost of equity for Go-Blue using the capital asset pricing model

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