Common Stock

A company just paid dividends of $$2\mathrm{.}75$ per share. The company has a constant growth of $5\mathrm{.}5\%.$ The risk$-$free rate is $2\mathrm{.}25\%,$ beta is $0\mathrm{.}80$ and market return of $8\%.$ Market value of the common stock is $$500,000.$

a$.$ Determine the rate of return using the CAPM.

b$.$ Determine the weighted average cost of capital for the company.