Calculate the cost of equity

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Reference no: EM13870780

A corporation’s data is as follows:

Beta; 1.20

Recent dividend; $.70

Expected dividend growth; 5%

Expected return of the market; 11%

Treasury Bills are yielding; 1.5%

Most recent stock price; $85

A] Using the DCF method, calculate the cost of equity.

B] Using the SML method, calculate the cost of equity

Reference no: EM13870780

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