Beatrix Mines has the following optimal capital structure: - Debt=25% - Equity (ordinary shares) =65% - Their tax rate is 28% and their beta is 1.5 . - 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 (D0). - The current market price at which a share sells is R80. - 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