Calculate the cost of equity using the sml method

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Reference no: EM131084445

Zoot Industries stock has a beta of 1.20. The company just paid a dividend of $.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 6.2 percent. The most recent stock price for the company is $79.

Calculate the cost of equity using the DCF method.

Calculate the cost of equity using the SML method.

Reference no: EM131084445

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