Minder Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividends are expected to grow at 6 percent. The expected return on the market is 11 percent, and Treasury bills are yielding 6.5 percent. The most recent stock price for the company is $82.

a.

Calculate the cost of equity using the DCF method.

b.	Calculate the cost of equity using the SML method