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Calculate the cost of equity using the dcf method calculate

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Reference no: EM13568310

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 5.9 percent. The most recent stock price for Berta is $76.

Calculate the cost of equity using the DCF method.

Calculate the cost of equity using the SML method.

Reference no: EM13568310

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