$2\mathrm{.}1$ Beatrix Mines has the following optimal capital structure:

Debt $=25\%$

Equity $($ordinary shares$)=65\%$

Their tax rate is $28\%$ and their beta is $1\mathrm{.}5.$

Investors expect earnings and dividends to grow at a constant rate of $8\%$

in the future.

The previous year a dividends of R$4,70$ per share was $($D$0).$

The current market price at which a share sells is R $80.$

The risk$-$free rate is $8\%$ and the market risk premium is $6\%.$

Required:

Determine the cost of ordinary shares for Beatrix Mines $($Pty$)$ Ltd:

a$)$ By using the constant growth model $($discounted cash flow approach$)$

b$)$ By using the CAPM approach.