Calder Technologies Inc. has a beta of 0.90 . The risk-free rate is estimated as 2.0% while the expected return on the market is 10.0%, what is the company's cost of common equity using the capital asset pricing model (CAPM) approach? 9.20% (B) 9.75% (C) 9.98% (D) 10.13% 11.00% Johnson Inc.'s common stock currently trades at $66.00 a share. It is expected to pay an annual dividend of $1.85 a share on year from now and the constant growth rate is expected to be 4.0% a year. If the company issues new stock, it will incur a 4.5% flotation cost. What is the company's estimated cost of new equity? 6.63% (B) 6.78% 6.94% (D) 7.10% 7.48%