Assume you expect a company$$s net income to remain stable at $$3,500,000$ for all future years, and you expect $60\%$ of earnings to be distributed to stockholders at the end of each year, so that common equity also remains stable for all future years $($this also assumes a clean surplus$).$ Also, assume the company$$s $\backslash$beta $=1\mathrm{.}4,$ the market risk premium is $8\%$ and the $10-$year yield on risk$-$free government bonds is $4\mathrm{.}3\%.$ Finally, assume the company has $1,000,000$ ordinary shares outstanding.

A$.$ Use the CAPM to estimate the company$$s equity cost of capital.

b$.$ Compute the expected net distributions to stockholders $($dividends$)$ for each future year.

Please answer it correct calculation, so that i can do other similar question.

Thank you