Mackenzie Company has a price of $$30$ and will issue a dividend of $$2\mathrm{.}00$ next year. It has a beta of $1\mathrm{.}3,$ the risk$-$free rate is $5\mathrm{.}2\%,$ and the market risk premium is estimated to be $5.$

a$.$ Use the CAPM to estimate the equity cost of capital for Mackenzie.

b$.$ Under the CDGM$,$ at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part $($a$)?$

a$.$ Use the CAPM to estimate the equity cost of capital for Mackenzie.

The equity cost of capital for Mackenzie is $\%.($Round to two decimal places.$)$