Laverne Industries stock has a beta of 1.15. The company just paid a dividend of $.95, and the dividends are expected to grow at 4 percent. The expected return of the market is 11.5 percent, and Treasury bills are yielding 3.8 percent. The most recent stock price is $81.

Required:
(a)	Calculate the cost of equity using the dividend growth model method. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Cost of equity

%

(b)	Calculate the cost of equity using the SML method. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Cost of equity

%