Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 33.5%, and the current dividend yield is 5.50%. Its beta is 1.27, the market risk premium is 11.50%, and the risk-free rate is 3.30%.

A: Use the CAPM to estimate the firms cost of equity (round 2 decimal places)

B: Now use the constant growth model to estimate the cost of equity (Enter as a whole percent)