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Riddle Industries has the following parameters related to its stock and firm. Beta: 1.5 Recent Dividend 0.75 dollars Dividend Growth Rate 4.5 percent Expected return

Riddle Industries has the following parameters related to its stock and firm.

Beta: 1.5
Recent Dividend 0.75 dollars
Dividend Growth Rate 4.5 percent
Expected return on market 12.5 percent
Treasury Bills Yield 4.3 percent
Most recent stock price 64.00 dollars

What is the cost of equity using DDM? What is the cost of equity using SML?

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