Your estimate of the market risk premium is 9%. The risk-free rate of return is 3.7% and General Motors has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM), what is its expected return? A. 18.1% B. 16.3% C. 15.5% D. 17.2% IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 6% a year. The price of IBM is $100 per share. What is IBM's cost of equity capital? A. 8% B. 3.2% C. 6% O D. 2.4%