Example

The following data were assembled for General Stores Corporation:

Equity $($Market Risk$)$ Premium: $4\mathrm{.}9\%$

Size Premium: $1\mathrm{.}8\%$

Value Premium: $3\mathrm{.}0\%$

Current Risk$-$Free Rate: $3\mathrm{.}5\%$

Market Beta: $1\mathrm{.}05$

Size Beta: $-0\mathrm{.}315$

Value Beta: $-0\mathrm{.}224$

Using the data above, estimate General Stores' cost of equity using the Fama$-$

French Model.