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Style Boyz stock has a beta of 1.98. The company just paid a dividend of $0.65, and the dividends are expected to grow at 6.1%.
Style Boyz stock has a beta of 1.98. The company just paid a dividend of $0.65, and the dividends are expected to grow at 6.1%. The expected return on the market is 10.5%, and Treasury bills are yielding 3.4 %. The most recent stock price for the company is $72. Calculate the cost of equity using the DCF method.
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Using the same information from (11), calculate the cost of equity using the SML method?
11.07%
18.2%
5.1%
17.5%
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