GGM with CAPM

DU recently paid a dividend of $$1\mathrm{.}60.$ 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 $1\mathrm{.}4,$ the risk$-$free rate is $1\mathrm{.}25\%,$ and the expected return on the

market is $7\mathrm{.}5\%.$

a$.$ What is the cost of equity?

$\%$

Round your answer to two decimals

b$.$ What is the current value of DU's shares?