Cumberland has just paid a dividend of $ 0.45 per share and the dividends are expected to increase to 4% per year. The common share beta is 1.15 and the expected market return is 11%. Treasury bills pay off 3.7%. Cumberland shares are trading at $ 72 per share. 1) Calculate the cost of common shares using the growth model of dividend. 2) Calculate the cost of common shares using MEDAF. 3) Why do you think your estimates in 1) and 2) are so different