Floyd Industries stock has a beta of 1. The company just paid a dividend of $0.85, and the dividends are expected to grow at 7 percent.

Floyd Industries stock has a beta of 1.69. The company just paid a dividend of $0.85, and the dividends are expected to grow at 7 percent. The expected return of the market is 16 percent, and Treasury bills are yielding 7 percent. The most recent stock price for Floyd is $57.

1:Calculate the cost of equity using the DDM method. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

2 Calculate the cost of equity using the SML method. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

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Assignment Solutions

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