1. The problem asks to find the cost of equity using the Capital Asset Pricing Model (CAPM). 2. The CAPM formula is: $$\text{Cost of Equity} = R_f + \beta (R_m - R_f)$$ where $R_f$ is the risk-free rate, $\beta$ is the beta of the stock, and $R_m$ is the expected market return. 3. To solve, you need the values of $R_f$, $\beta$, and $R_m$ from the "above information" which is not provided here. 4. Once you have those values, substitute them into the formula and calculate: $$\text{Cost of Equity} = R_f + \beta (R_m - R_f)$$ 5. For example, if $R_f=0.03$, $\beta=1.2$, and $R_m=0.08$, then: $$\text{Cost of Equity} = 0.03 + 1.2(0.08 - 0.03) = 0.03 + 1.2 \times 0.05 = 0.03 + 0.06 = 0.09$$ 6. This means the cost of equity is 9%.