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.

   		6%
   		4.9%
   		5.1%
   		7.1%