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(i) Using the following information for Brady & Co, calculate the cost of equity (Rs) for the company (2 Pts.): Risk Free Rate (Rf). 6.0%

(i) Using the following information for Brady & Co, calculate the cost of equity (Rs) for the company (2 Pts.): Risk Free Rate (Rf). 6.0% Return on Market (Rm). 11.0% Beta 1.1

(ii) using the following information calculate the cost of equity (Rs) for Brady & Co (3 Pts.):

Market Price of Stock. $21.0

ROE 12.0%

Next Year Dividend $1.0

Expected Dividend Payout 40.0%

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