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National Home Rentals has a beta of 1 . 0 6 , a stock price of $ 1 7 , and recently paid an annual

National Home Rentals has a beta of 1.06, a stock price of $17, and recently paid an annual dividend of $.92 a share. The dividend growth rate is 2.2 percent. The market has a rate of return of 11.2 percent and a risk premium of 7.3 percent.
What is the estimated cost of equity using the CAPM?
What is the estimated cost of equity using the dividend discount model?
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