In March of this past$$ year, Manchester Electric$($an electrical supply company operating throughout the southeastern United States and a publicly held$$ company$)$ was evaluating the cost of equity capital for the firm. The$$ firm's shares are selling for $ $45\mathrm{.}00$ a$$ share; it expects to pay an annual cash dividend of $ $4\mathrm{.}50$ a share next$$ year, and the$$ firm's investors anticipate an annual rate of return of $18\%$