Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have

been growing at a rate of $31\mathrm{.}5\%,$ and the current dividend yield is $3\mathrm{.}50\%.$ Its beta is $1\mathrm{.}23,$ the market risk premium is $9\mathrm{.}50\%,$ and the risk$-$

free rate is $3\mathrm{.}70\%.$

a$.$ Use the CAPM to estimate the firm's cost of equity.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

b$.$ Now use the constant growth model to estimate the cost of equity.

Note: Do not round intermediate calculations. Enter your answer as a whole percent.

c$.$ Which of the two estimates is more reasonable?