Cost of Equity The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 5% per year in the future. Shelby's common stock sells for $29.25 per share, its last dividend was $2.40, and the company will pay a dividend of $2.52 at the end of the current year. Using the discounted cash flow approach, what is its cost of equity? If the firm's beta is 2.0, the risk-free rate is 7%, and the expected return on the market is 12%, then what would be the firm's cost of equity based on the CAPM approach? If the firm's bonds earn a return of 12%, then what would be your estimate of r lessthanorequalto using the over-own-bond-yield-plus-judgmental-risk-premium approach? 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