Floyd Industries stock has a beta of $1\mathrm{.}3.$ The company just paid a dividend of $$0\mathrm{.}95,$ and the dividends are expected to grow at $6\mathrm{.}4$

percent per year. The expected return on the market is $10$ percent, and Treasury bills are yielding $6\mathrm{.}2$ percent. The most recent stock

price for Floyd is $$60.$

a$.$ Calculate the cost of equity using the dividend discount model method. $($Do not round intermediate calculations. Round the final

answer to $2$ decimal places.$)$

DDM method

b$.$ Calculate the cost of equity using the SML method. $($Do not round intermediate calculations. Round the final answer to $2$ decimal

places.$)$

SML method