Calculate the cost of equity using the dcf method.

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Reference no: EM131851729

Berta Industries stock has a beta of 1.20. The company just paid a dividend of $0.50, and the dividends are expected to grow at 6 percent. The expected return on the market is 11 percent, and Treasury bills are yielding 6.5 percent. The most recent stock price for Berta is $82.

a. Calculate the cost of equity using the DCF method. (Round your answer to 2 decimal places. (e.g., 32.16))

DCF method %

b. Calculate the cost of equity using the SML method. (Round your answer to 2 decimal places. (e.g., 32.16))

SML method %

Reference no: EM131851729

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