Stimulus

Company 1 is a publicly listed company in Australia. The current share price is $4.80 per share. Has 111 million shares outstanding, $55 million in debt, and $14 million in cash. The company plans to pay $0.25 per share in dividends in the coming year and the dividends are expected to grow by 3% per year in the future. The long-term debt of the Company consists of bonds issued with a face value of $55 million with 10 years to maturity with annual coupon rate of 6% (APR). The long-term bonds are currently trading at par value. The beta of the Company is 1.11, the risk-free rate is 2%, and the required return on the market portfolio is 6%. The corporate tax rate is 30%.

Question: What is the the companies cost of equity based on the dividend discount model (DDM)? What is the associated dividend yield and capital gain yield?