23. Calculating the Cost of Equity [LO1] Minder Industries stock has a beta of 1.08. The company just paid a dividend of $.65, and the dividends are expected to grow at 4 percent. The expected return on the market is 10.5 percent, and Treasury bills are yielding 3.4 percent. The most recent stock price for the company is $72. a. Calculate the cost of equity using the DCF method. b. Calculate the cost of cquity using the SML method. c. Why do you think your estimates in (a) and (b) are so different? 24. Adjusted Cash Flow from Assets [LO3] Pearl Corp. is expected to have an EBIT of $1.8 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $155,000, $75,000, and $115,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $9.5 million in debt and 750,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company's WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock? Page 492