The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 7% per year in the future. Shelby's common stock sells for $38 per share, its last dividend was $2.00, and the company will pay a dividend of $2.14 at the end of the current year.a. Using the discounted cash flow approach, what is its cost of equity? b. If the firm's beta is 1.0, the risk-free rate is 8%, and the expected return on the market is 13%, then what would be the firm's cost of equity based on the CAPM approach