Cost of Equity Company Y's common stock has a price of $50 and is expected to pay a dividend of $2 this year (D1). The stock's growth rate is a constant 8% per year. The beta for the stock is 1.2. T-bill rates are 3.5% and the S&P 500 (total market) return is 8%. Use both the Dividend Growth Model AND CAPM to find the cost of equity (COE). What is the average of the 2 methods for COE? 10.45% 11.56% 12.32% 15.97%