Question $1[6$ points$]$

ABC Enterprise needs to determine its cost of equity capital. Use the following information to estimate the firm's cost of equity using two different methods$/$models which you have learned. The current market price of stock is $$22\mathrm{.}98,$ the risk$-$free rate is $4\mathrm{.}02\%,$ the expected return on the market portfolio is $13\mathrm{.}50\%,$ the firm has a constant growth rate in dividends of $3\mathrm{.}10\%$ per year, current dividends are $$2\mathrm{.}00,$ and the firm's beta is $0\mathrm{.}85.$ Also, ABC's debt$-$to$-$equity ratio is $0\mathrm{.}92,$ while it's EPS is $$3\mathrm{.}60.$