Berta industries stock has a beta of 130 the company just


Berta Industries stock has a beta of 1.30. The company just paid a dividend of $0.30, and the dividends are expected to grow at 4 percent. The expected return on the market is 13 percent, and Treasury bills are yielding 6.0 percent. The most recent stock price for Berta is $77. 

a.  Calculate the cost of equity using the DCF method. (Round your answer to 2 decimal places.

DCF method % 

b.  Calculate the cost of equity using the SML method. (Round your answer to 2 decimal places.

SML method %

 

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Berta industries stock has a beta of 130 the company just
Reference No:- TGS0973625

Expected delivery within 24 Hours