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Berta Industries stock has a beta of 1.30. The company just paid a dividend of $0.30, and the dividends are expected to grow at 4
Berta Industries stock has a beta of 1.30. The company just paid a dividend of $0.30, and the dividends are expected to grow at 4 percent. The expected return on the market is 13 percent, and Treasury bills are yielding 4.5 percent. The most recent stock price for Berta is $62. a. Calculate the cost of equity using the DCF method. (Round your answer to 2 decimal places. (e.g., 32.16)) DCF method b. Calculate the cost of equity using the SML method. (Round your answer to 2 decimal places. (e.g., 32.16)) SML method
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