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Business, 16.11.2020 18:10 miannasanderso8146

Floyd 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 per year. The expected return on the market is 11 percent, and Treasury bills are yielding 5.9 percent. The most recent stock price for the company is $76. Required:
a. Calculate the cost of equity using the DDM method.
b. Calculate the cost of equity using the SML method.

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Floyd Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividen...

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