Bumble Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4 percent per year. The expected return on the market is 13 percent, and Treasury bills are yielding 6.3 percent. The most recent stock price for Floyd is $80.

A) calculate the cost of equity using the DDM method. (round your answer to 2 decimal places)

B) calculate the cost of equity using the SML method (round your answer to 2 decimal places)