Calculate the cost of equity using the DCF method

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Berta Industries stock has a beta of 1.25. The company just paid a dividend of $0.40, and the dividends are expected to grow at 5 percent. The expected return on the market is 12 percent, and Treasury bills are yielding 5.8 percent. The most recent stock price for Berta is $75. a. Calculate the cost of equity using the DCF method.

Reference no: EM131188277

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