what model is the correct model?

Suppose a firm has a beta of 1.5. The market risk premium is expected to be 8%, and the current risk-free rate is 2% The firm maintains a constant growing dividend policy that grows at 5% per year; the most recent dividend was $18. Currently stock price is $21 To find cost of equity using SML/CAPM model, R(E)=2%+1.5*(8%-2%) To find cost of equity using SML/CAPM model, R(E)=2%+1.5*8%