Market share Busi... Question 15 10 pts The CFO of Lenox Industries hired you as a consultant to help him estimate the cost of capital. You have obtained the following data: Tim Atten = = Risk-free rate = 3.50% Beta = 1.35 Market Risk Premium = 5.00% Dividend payout next period = D1 = $2.75 Current stock price = Po = $35.00 Growth rate = g = 4.00% = = = 1. What is cost of equity of the firm using dividend discounted model? 2. What is cost of equity of the firm using CAPM method? 3. Based on dividend discounted model, if firm is expected that the dividend payout for the next period will be only $2.00 per share as well as the expected growth of the company will be 5.50%. What is the new firm's cost of equity? Edit View Insert Format Tools Table 12pt v Paragraphy OCT 22 tv SI A A O = MacBook Air 20 000 000 Dll F3 F4 DD F5 F6 F7 F8 F9 $ % A o