45.A firm's common stock currently sells for $40 per share. The firm's next dividend expected to pay is $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10% per year. What's the firm's cost of common stock using DCF approach?

9.5%

15.0%

15.5%

16.5%

46.A stock is selling for $50 in the market. The company's beta is 1.2, the market risk premium (r_M- r_F) is 5%, and the risk-free rate is 6%. The most recent dividend paid is D₀= $2.0 and dividends are expected to grow at a constant rate g. What's the required rate of return by common shareholders?

5.0%

6.0%

11.0%

12.0%