You are forecasting the returns for Carla Company, a plumbing supply company, which pays a current dividend of $ 9.30. The dividend is expected to grow at a rate of 2.3 percent. You have identified two public companies, Sarasota and Shamrock, which appear to be comparable to Carla. Sarasota has the same total risk as Carla and a beta of 0.85. Shamrock, in contrast, has a very different total risk but the same market risk as Carla. Shamrocks beta is 0.65. The market risk premium is 4.15 percent and the risk-free rate is 0.65 percent