Berta industries stock has a beta of 130 the company just, Ask an Expert

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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 4.8 percent. The most recent stock price for Berta is $65.

a.
Calculate the cost of equity using the DCF method.
b.
Calculate the cost of equity using the SML method.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9860491

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