Business, 01.04.2020 19:26 anthony3913

Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40 and the dividends are expected to grow at 5 percent per year. The expected return on the market is 12 percent, and Treasury bills are yielding 6.1 percent. The most recent stock price for the company is $78.

(a) Calculate the cost of equity using the DDM method. (Round your answer to 2 decimal places. (e. g., 32.16)).

(b) Calculate the cost of equity using the SML method. (Round your answer to 2 decimal places. (e. g., 32.16)).

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Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40 and the dividend...

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