Answer the following questions regarding company RIM.
Consider the following information for company RIM:
Current market price per share $50.00
Most recent dividend paid per share $2.00
Expected dividend payout rate 50%
Return on equity 10%
Beta coefficient for common stock 1.00
Expected return on the market portfolio 9%
Return on government treasury bills 3%
Using the discounted cash flow/dividend growth model, what is the cost of equity capital for RIM?
Using the Capital Asset Pricing Model (CAPM) approach, what is the cost of equity capital for RIM?