Given the following information compute a firm's cost of equity using the Capital Asset Pricing Model $($CAPM$).$

Beta $=1\mathrm{.}50$

Long$-$term dividend growth rate $=4\mathrm{.}5\%$

Risk$-$free rate of return $=4\mathrm{.}0\%$

Dividend expected at the end of year $1=$$$2\mathrm{.}45$

Market risk premium $=7\mathrm{.}0\%$

Current common stock market price $=$$$22\mathrm{.}00$

$17\mathrm{.}68\%$

$14\mathrm{.}50\%$

$16\mathrm{.}50\%$

$12\mathrm{.}99\%$