Problem $13-19$ Calculating the Cost of Equity

Ginger Industries stock has a beta of $1\mathrm{.}25.$ The company just paid a dividend of $$\mathrm{.}40$ and the dividends are expected to grow at $5$ percent per year. The expected return on the market is $12$ percent, and Treasury bills are yielding $5$ percent. The most recent stock price for the company is $$67.$

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$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.$ DDM$,\%$