Mackenzie Company has a price of

$ 35$35

and will issue a dividend of

$ 2.00$2.00

next year. It has a beta of

1.31.3?,

the? risk-free rate is

5.7 %5.7%?,

and the market risk premium is estimated to be

5.1 %5.1%.

a. Estimate the equity cost of capital for Mackenzie.

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?)?

a. Estimate the equity cost of capital for Mackenzie.

The equity cost of capital for Mackenzie is

nothing?%.

?(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 dividends is

nothing?%.

?(Round to two decimal? places.)