The earning5, dividends, and stock price of Shelby Inc, are expected to grow at 6% per year in the future. Shelby's common stock seils for $29 per share, its last dividend was $3.00, and the company will pay a dividend of $3.18 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 decimal piaces. 7/4 b. If the firm's beta is 1.8, the risk-free rate is 8%, and the expected return on the maricet is 12%, then what would be the firm's cost of equity based on the CAPM approach? Round your answer to two decimat places. c. If the firm's bonds eam a return of 12%, then what would be your estimate of rs using the own-bond-yield-plus-judgmental-risk-premium approach? (Hint: Use a 4% risk premium.) Round your answer to two decimal places. d. On the basis of the results of parts a-c, what would be your estimate of Shelby's cost of equity? Assume Shelby values each approach equally. Round your answer to two decimal places