Floyd Industries stock has a beta of 1.40. The company just paid a dividend of $0.75, and the dividends are expected to grow at 4 percent. The expected return of the market is 17 percent, and Treasury bills are yielding 8 percent. The most recent stock price for Floyd is $57.

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

%