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Using the DCF method, calculate the cost of equity

Your Corp, Inc.'s data is as follows:
Beta; 1.30
Recent dividend; $.90
Expected dividend growth; 7%
Expected return of the market; 14%
Treasury Bills are yielding; 4%
Most recent stock price; $65

A] Using the DCF method, calculate the cost of equity.
B] Using the SML method, calculate the cost of equity.
C] The answers in [A] and [B] are very different. Why?

 

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