Cost of Equity The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 6% per year in the future. Shelby's common stock selis for s28.50 per share, last dividend was $1.50, and the company will pay a dividend of $1.59 at the end of the current year. a. Using the discounted cash flow approach, what is its cost of equity? Round your answer to two decimal places. % b. If the firm's beta is 1.5, the risk-free rate is 7%, and the expected return on the market is 14%, then what would be the firm's cost of equity based on the CAPM aberoach? Round your answer to two decimal places. Round vour answer to two decimal places. (Hint: Use the midpoint of the risk premium range.) d. On the basis of the results of parts a through c, what would be your estimate of Shelby's cost of equity? Assume Shelby values each approach equally. Round vour answer to two decimal places