Floyd Industries stock has a beta of 1.35. The company just paid a dividend of $0.80, and the dividends are expected to grow at 4 percent. The expected return of the market is 13 percent, and Treasury bills are yielding 5 percent. The most recent stock price for Floyd is $63.

Requirement 1: Calculate the cost of equity using the DDM method. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Cost of equity ? _______%

Requirement 2: Calculate the cost of equity using the SML method. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Cost of equity? _______ %