According to the textbook (Financial Management, Theory & Practice, 16 Ed., ISBN: 978-1-337-90260-1), you learned in chapter 7 how to value stocks using the constant dividend growth model (or constant free cash flow growth model) and P/E ratio valuation model. These models show that current stock prices depend heavily on two value drivers, namely, the future growth rate of earnings/dividends/cash flows (g) and the firm's expected future cost of capital (rs or k or WACC). Remember that P/E ratio can be expressed as: (dividend payout ratio)/(k-g). The cost of capital is also known as the investors' required return on capital. Now put yourself in the current time period (Jan-May, 2022) where inflation is currently running from 7-8% annually and U.S. central bank (Federal Reserve) has raised the benchmark interest rate (Fed fund rate) by 0.50% and told investors that it'll raise its Fed fund rate at least twice again by 0.50%. Chapters 6 and 7 explain (e.g., see Figure 6-10) that a rise in real interest rate and expected inflation will raise the risk-free interest rate and the firm's cost of capital (k or WACC). (a) How would a rise in inflation and interest rates affect the two value drivers (k and g) and the firm's stock price? You would want to see the discussion in chapter 7 (pages 318-323). (b) Now think of firms that can pass on the higher borrowing costs and input costs on to consumers by raising their product prices and compare them to firms that may not be able to do so due to competitive pressures and other industry factors. Which type of firms will have a little negative effect (or even have positive effect) on their earnings growth (g value driver) and stock prices? Explain. You would want to see the discussion in chapter 7 (pages 318-323). Limit your answers to 10 sentences.