Calculate the cost of equity using the sml method

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Floyd Industries stock has a beta of 1.21. The company just paid a dividend of $0.70, and the dividends are expected to grow at 6 percent. The expected return of the market is 12 percent, and Treasury bills are yielding 5 percent. The most recent stock price for Floyd is $58. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

calculate the cost of equity using the DCF method.
Calculate the cost of equity using the SML method.

Reference no: EM13290374

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