The capital asset pricing model (CAPM) shown below (and discussed in our session) is often used as a relationship to estimate a firms equity discount rate (also known as the firms cost of equity capital). If you had a stock that traded in a market where the expected rate of return on the market index was 12%, the risk-free rate was 2%, and the stocks beta was 1.5, what would the firms cost of equity capital (equity discount rate) be?