Floyd Industries stock has a beta of 1.3. The company just paid a dividend of $.95, and the dividends are expected to grow at 4.5 percent per year. The expected return on the market is 11 percent, and Treasury bills are yielding 4.3 percent. The most recent stock price for Floyd is $64.

a. Calculate the cost of equity using the DDM method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

DDM method %

b. Calculate the cost of equity using the SML method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

SML method %