Stock in ABC has a beta of 0.9. The market risk premium is 8%, and T-bills are currently yielding 5%. The company's most recent dividend is $1.60 per share, and dividends are expected to grow at a 6% annual rate indefinitely. If the stock sells for $37 per share,

a) What is the estimate of the company's cost of equity using CAPM?

b) What is the estimate of the company's cost of equity using the dividend discount model?