Stock in CDB Industries has a beta of 1.12. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. CDBs most recent dividend was $3.60 per share, and dividends are expected to grow at a 5.2 percent annual rate indefinitely. The stock sells for $58 per share.

Required: Using the CAPM, what is your estimate of CDBs cost of equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Cost of equity ________ %

Using the dividend discount model, what is your estimate of CDBs cost of equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Cost of equity__________ %

What is your best estimate of CDBs cost of equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Cost of equity ___________ %

This was asked before but the answer was incorrect...please help!