Acne Payday Lenders has a beta of 1.14, a stock price of $32.68, and recently paid an annual dividend of $0.44 per share. The market has a 14.6 percent rate of return and a risk-free rate of 4.0 percent. What is the firm's cost of equity?

1.The formula needed is

a.Two stage growth model

b.The constant growth model

c.The Capital Asset Pricing Model

The terminal point model

2.

The formula for the cost of equity is

a.E(R_i) = R_f + [E(R_M) - R_f] x B

b.E(R_i) = R_f - [E(R_M) - R_f] x B

c.E(R_i) = R_f + [E(R_M) + R_f] x B

d. E(R_i) = R_f + [E(R_M) - R_f] / B

3.What is the cost of equity? step by step please