the lowo company has a beta of 1.4 the yield on the 90 days goverment of canada tresury bills is 2.75 the general market yields a return of 66% the company is trying to get is cost of common equity the owner of the company learned that he can use the captial asset pricing model the dividend growth model to calculate the cost of common shares(rS)?. he provided you with additional information that can company als estimated its gowth rate in dividind for the foreseeable future to be 6%. its stock peice currently sells for 40 and it recently declard a dividend of 2$?

1.Find the cost of common shares using the CAPM METHOD?

find the cost of common shares using the dividend Growth ( DGM) approcah