Benton Industries stock has a beta of 1.3. The company just paid a dividend of $.30, and the dividends are expected to grow at 4 percent per year. The expected return on the market is 13 percent, and Treasury bills are yielding 4.5 percent. The current price of the company's stock is $62.   

a. Calculate the cost of equity using the DDM method. 

b. Calculate the cost of equity using the SML method.