Q1. You are a financial manager of a firm and are asked to assess the cost of capital of your firm. You know that . Your firm just paid dividend $2 per share The current stock price is $50 per share Firm beta is 10% higher than market average . Constant growth rate is 3% Expected market return is 11% and risk free rate is 1% There is totally 10 million of outstanding shares of stocks, and for each dollar equity, firm issued $1.5 debt Cost of borrowing/issuing bond is 5% Corporate tax rate 30% . Dividend $2 here is [D1 or DO]? What is the value of D1 ? What is the value of DO 2 What is the cost of equity (common stock) using dividend growth model ? (keep 4-digit after decimal point, e.g. 0.1234) Using information from the Q1 What is the value of the beta for this firm ? What is the value of market risk premium ? (use decimal point) What is the cost of equity (common stock) using CAPM model ? (keep 2-digit after decimal point, e.g., 0.12)