What are possible reasons that two results are different

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Question - Cost of Equity - Western Industries' (not a real company) stock has a beta of 0.80. The company just paid a dividend of $2.20, and the dividends are expected to grow at 3.0% per year. The expected return on the stock market is 10.00% percent, and 3-month Treasury bills are yielding 10 basis points. High Yield Bonds are yielding 5.50%. The most recent stock price for the company is $50.00. What are the possible reasons that the two results are different?

Reference no: EM132955965

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