DU recently paid a dividend of $1.30. An analyst expects that the firm's dividend rate will grow at a constant rate of 2% indefinitely. He also determines DU's beta is 0.85 , the risk-free rate is 2.8%, and the expected return on the market is 9%. a. What is the cost of equity? % Round your answer to two decimals b. What is the current value of DU's shares? Round your answer to the nearest cent