calculate the rate of rethrn on equity using the dividend growth model

The Envelope Company has the following liabilities and equity Liabilities and Stockholders' Equity Accounts Payable and Accruals $ 550 Short Term Notes Payable $1,100 Long Term Bank Financing $2,000 Total Liabilities $3,650 Stockholders' Equity $3,250 Total Liabilities and Equity $6,900 The risk free rate of return is 3.0%. The market rate of return is 12.5%. The Beta is 1.2. The P/E ratio is 7.1. The stock price is $14.80. The last annual dividend was $0,60. This dividend is expected to grow 4.5% per year in the future. Envelope's tax rate is 35%. The interest rate is 2.75% on short term notes payable, 5.3% on long term bank financing, and 0% on other liabilities. Calculate the rate of return on equity using the dividend growth model Calculate the required rate of return on equity using capital asset pricing model (CAPM). What is the capital structure of the company? What is the after-tax cost of accounts payable? What is the after tax cost of short term notes payable? What is the after tax cost of long term bank financing