a$)$ A company has a beta of $1\mathrm{.}35.$ The risk$-$free rate of return is $5$ percent and the market risk premium is $7$ percent. Find the required rate of return on the stock $($i$.$e$.,$ the cost of equity capital$).$

b$)$ The firm will pay a dividend of $$5\mathrm{.}00$ per share next year. The firm will increase the dividend payment by $$0\mathrm{.}50$ a share every year for the next $5$ years $($i$.$e$.,$ years $2$ to $6).$ Thereafter, the dividends are expected to grow at $6$ percent per year forever. What is the firm's current stock value? Use the required rate of return on the stock from $($a$).$