Consolidated Edison, which is currently selling for $58.64 a share, paid a dividend of $2.46 in the year just ended. It is expected that dividends and earnings will grow indefinitely at a rate of 2%. First, estimate a fair rate of return for Con. Ed's common stock using the Constant Growth Model Approach. Second, use the CAPM to estimate a fair required rate of return on Con. Ed. given that its beta is 0.30, the required rate of return on the market is 10%, and the risk free rate is 4%.