Cost of Equity

The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 4% per year in the future. Shelby's common stock sells for $22 per share, its last dividend was $2.00, and the company will pay a dividend of $2.08 at the end of the current year.

Using the discounted cash flow approach, what is its cost of equity? Round your answer to two decimal places.
%

If the firm's beta is 1.3, the risk-free rate is 6%, and the expected return on the market is 11%, then what would be the firm's cost of equity based on the CAPM approach?