Ginger Industries stock has a beta of 1.25. The company just paid a dividend of $.40 and the dividends are expected to grow at 5 percent per year. The expected return on the market is 12 percent, and Treasury bills are yielding 5.8 percent. The most recent stock price for the company is $75.

a.	Calculate the cost of equity using the DDM. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	Calculate the cost of equity using the CAPM. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)