Company stock is currently selling for $160 per share and the firm's dividends are expected to grow at 5% indefinitely. In addition, the company's most recent dividend was $5.50. The expected risk free rate of return is 3%, the expected market return is 8% and the company's beta is 1.20.

1. what is the expected return based on the dividend evaluation model?

2. What is the required return based on the CAPM (capital asset pricing model)