OO eBook Problem Walkthrough Cost of Equity The earnings, dividends, and stock price of Shelby Inc. are expected to grow as per year in the future. Shelby's common stock for $27.75 per stress avidend 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 deomal places. b. If the firm's bete is 1.7. the risk-free rates 34, and the expected return on the market 12, then what would be the firm's cost of equity based on the CAP pract Hound your answer to two decimal places c. If the firm's bonds earn a return of 10%, then what would be your estimate of using the own-bond-Vield.plus-Judgmentals premium approach Chet me mi pont risk premium range:) Round your answer to two decimal places d. On the basis of the results of parts - what would be your estimate of Shelby's cost of equity Assume Shelby vsech approach outy Hound your answer to be don places