Krackle Industries, Inc. management expects to pay a dividend of $4.20 next year (D1=$4.20), currently has a stock price of $75, and a growth rate of 5.6%. Krackle Industries stock has a beta of 1.2, as computed by a leading investment service. The present risk-free rate is 3.0 percent, and the expected return on the stock market is 12.0 percent.

Based on use of the CAPM approach what is Krackle's cost of common stock? Based on use of the constant-growth approach what is Krackle's cost of common stock?

Please show formula and calculator inputs: PMT, I/Y, FV, etc.