1. The Up and Coming Corporation's common stock has a beta of 1.81. If the risk-free rate is 0.01 and the expected return on the market is 0.06, what is the company's cost of equity capital? Enter the answer with 4 decimals (e.g. 0.1234).
2. The Down and Out Co. just issued a dividend of $1.20 per share on its common stock. The company is expected to maintain a constant 0.01 growth rate in its dividends indefinit ely. If the stock sells for $40.43 a share, what is the company's cost of equity? Enter the answer with 4 decimals (e.g. 0.1234)