There is a company by the name of Sunshine Holdings who has earnings, dividends, and stock prices which are expected to grow at 7% per year in the future. Sunshine Holdings' common stock sells for $23 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 discounted cash flow approach, what is the cost of equity? (2) b. If the firm's beta is 1.6, the risk free rate is 9% and the expected return on the market is 13%, what will be the firm's cost of equity using the CAPM approach? (2) c. If the firm's bonds earn a rate of return of 12%, what will rs be using the bond-yield-plus-risk- premium approach? Use the midpoint of the risk premium range. (2) d. Based on the results of parts a through c what would you estimate Sunshine Holdings' cost of equity to be? (10 Points)