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please help i cant figure it out a and b thank you Problem 13-19 Calculating the Cost of Equity Ginger Industries stock has a beta
please help i cant figure it out
Problem 13-19 Calculating the Cost of Equity Ginger Industries stock has a beta of 1.30. The company just paid a dividend of $.30 and the dividends are expected to grow at 4 percent per year. The expected return on the market is 13 percent, and Treasury bills are yielding 6 percent. The most recent stock price for the company is $77. a. Calculate the cost of equity using the DDM. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the cost of equity using the CAPM. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a and b
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