Floyd Industries stock has a beta of 1.80. The company just paid a dividend of $0.65, and the dividends are expected to grow at 7 percent. The expected return of the market is 15 percent, and Treasury bills are yielding 5 percent. The most recent stock price for Floyd is $52. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))
Required:
(a) Calculate the cost of equity using the DCF method.
(b) Calculate the cost of equity using the SML method.