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do not answer the forst picture. Answer these 2 pictures please. Minder Industries stock has a beta of 1.20. The company just paid a dividend

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do not answer the forst picture. Answer these 2 pictures please.
image text in transcribed
image text in transcribed
Minder Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividends are expected to grow at 6 percent. The expected return on the market is 11 percent, and Treasury bills are yielding 4.9 percent. The most recent stock price for the company is $66. a. Calculate the cost of equity using the DCF method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the cost of equity using the SML method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) se a. DCF method b. SML method % % An all-equity firm is considering the following projects: Project Beta RR W 63 9.4% X 76 10.5 Y 1.29 14.0 Z 1.40 17.1 The T-bill rate is 5.1 percent, and the expected return on the market is 12.1 percent. Compared with the firm's 12.1 percent cost of capital, Project W has a expected return, Project X has a expected return, Project Y has a expected return, and Project Z has a expected return. Project W should be Project X should be Project W should be Project Y should be should be Project X should be and Project 2 d ces If the firm's overall cost of capital were used as a hurdle rate, Project W would be Project X would be and Project Z would be Project Y would be

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