Using a market risk premium of 8.5%, the risk-free rate of 4.37%, and the 1.12 beta, estimate your firm's cost of equity using the CAPM formula. What is your Capital Asset Pricing Model (CAPM) estimate of the cost of equity? Show work.

Take 4.558% YTM and add 6.1%. This sum leads to another estimate of the cost of equity called the bond yield plus risk premium (BYPRP) estimate. What is your BYPRP estimate of the cost of equity? For cost of equity use Weighted Average Cost of Capital formula.