Let's go through the steps of how you actually calculate the cost of equity based on a dividend growth model. Now this requires two things. One of them is you can find a company and find the dividends that they have. And second is understanding the calculation that's involved. Here, we have the dividend growth model that's written out. And the origins of this model are the value of a perpetuity. Remember, the value of perpetuity is the cashflow divided by the interest rate. And if we have some type of an inflation, we have to adjust that interest rate for that inflation g. If we rearrange our terms so that instead of trying to identify the value P, we're trying to identify the rate of return R, we get this. D/P + g. So this becomes our dividend growth rates, that is, the rate of return of equity for a company that gives a dividend of D1 relative to its share price of P0 plus the growth rate, shows us what the rate of return is. Let me say it one more time. The dividend growth model says the rate of return, the cost of capital for this particular company is the ratio of its dividend to its share price, plus the growth rate that its dividends are growing. So let me show you how we calculate this. I'm going to go to Yahoo Finance, and I looked up United Parcel Service, UPS. And what I did is, I clicked historical prices, and then went over here and collected dividends only. And I then typed in my starting date of September 26, 2000, my end date of September 26th, 2014 and clicked Get Prices. And lo and behold, these are the prices that I get. What does this mean? Look back from like to 2000. So, starting in 2000, 2001, I was getting four equal payments of 19 cents 0.19 times 4. So I was getting about 76 cents a year. And that went up to, starting in 2001, 2002, 2003, it went to 0.21 times 2 plus 50 cents, to about 92 cents. And then it went up to $1.32, and then it went up to $1.52, and then that went up to, $1.68. So, I'm going to use my handy, handy calculator. And I'm going to calculate the growth rate. From 92 cents to $1.32, or $1.32 to $1.52, or $1.52 to $1.62. To calculate the growth rate, I'm going to take the change in value relative to the initial. So if I'm going from 92 cents to $1.32, it's 40 cents. And 40 cents as a ratio of 92 cents, is pretty significant. It's like a 43% increase. But going from $1.32 to $1.52, that's a 20 cents, divided by $1.32 is, that's a 15% increase. And $1.52, $1.68, that's 16 cents, as a ratio of 1.52. So that gives me a, let's see 0.16 divided by 1.52, gives me a 10%. So I went from 40% down to 15%, down to 10%, down to probably 8 or 9%. I'm guessing the growth rate is going to converge in about anywhere from let's say 9%, maybe 5 or 6% to 9%. When your dividends are really small you have these growth rates that can be pretty large. But now that we've gotten into dividends of $1.60, $1.70, $1.80, what have you, $2.40. You're growth rates are going to be much smaller relative to these larger dividends. So you've got, let's say you've got 40 cents as a ratio of 2.48. You're talking 15% to 16%, okay? So let's suppose our growth rate converges at about 10%, 9, 10%. So that's what our g is. In order to figure out what our rate is, we need our dividend divided by our price plus g. So our dividend here is our annual dividend of point let's say 67 times 4 gives me $2.68. The price of my stock is 97. So put that in the denominator. So I'm taking 2.68 divided by 97.07, which gives me 2.7%, and I'm going to add that to a growth rate of 10%, so my rate of return, my hurdle rate is 12.7% for this company. This is my rate of return for my equity. So, here's what I did in a nutshell. I went to UPS, I looked at the historical prices, the dividends only, and this is over 14 years. I identified that their dividends are growing somewhere between 15 and maybe 8 or 9%. And so I chose a 10% as a relatively comfortable growth rate. Then I took the dividend, which is the annual dividend of 2.68, divided it by the stock price, 97.09, and then added that to my 10% growth rate. And now I get a cost of equity of 12.7%. What I'd like you to do is find another company, maybe your own company, maybe a company in that same industry that gives dividends. And try to calculate the hurdle rate, the internal rate of return of equity for that company using the dividend growth formula.