Scotty's next dividend payment is expected to be $2.25 and its stock is currently $65 per share. Scotty has a beta of 0.8 and is expected to grow at 10% for the foreseeable future. Compute Scotty's cost of equity using both CAPM and the Dividend Discount Model. Assume that the S&P 500 will return 10% and the T-Bill rate is 3%. CAPM: 8.2%; Dividend Discount Model: 9.56% CAPM: 8.6%; Dividend Discount Model: 13.46% CAPM: 9.7%; Dividend Discount Model: 12.56% CAPM: 10.1%; Dividend Discount Model: 11.46%