Calculate the cost of equity using the dcf method

Reference no: EM13281150

Berta Industries stock has a beta of 1.30. The company just paid a dividend of $0.30, and the dividends are expected to grow at 4 percent. The expected return on the market is 13 percent, and Treasury bills are yielding 4.8 percent. The most recent stock price for Berta is $65.

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

Reference no: EM13281150

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