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Ginger Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5

Ginger Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5 percent. The expected return on the market is 12 percent, and Treasury bills are yielding 4.7 percent. The most recent stock price for the company is $64.

Calculate the cost of equity using the DGM method.

Calculate the cost of equity using the SML method.

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