Mackenzie Company has a price of $$32\mathrm{.}69$ and will issue a dividend of $$2\mathrm{.}10$ next year. It has a beta of $1\mathrm{.}06,$ the risk$-$free rate is $5\mathrm{.}73\%,$ and the market risk premium is estimated to be $5\mathrm{.}06\%.$

a$.$ 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$.$ Estimate the equity cost of capital for Mackenzie.

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

b$.$ Under the CGDM$,$ 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$)?$

The expected growth rate for Mackenzie's dividends is $\%.($Round to two decimal places.$)$