Page 1 of 1
Benton Industries stock has a beta of 1.2. The company just paid a dividend of $.50, and the dividends are expected to g
Posted: Wed Mar 30, 2022 3:43 pm
by answerhappygod
- Benton Industries Stock Has A Beta Of 1 2 The Company Just Paid A Dividend Of 50 And The Dividends Are Expected To G 1 (99.41 KiB) Viewed 51 times
Benton Industries stock has a beta of 1.2. The
company just paid a dividend of $.50, and the dividends are expected to grow at 6 percent per year. The expected return on the market is 11 percent, and Treasury bills are yielding 6.2 percent. The current price of the
company's stock is $79. a. Calculate the cost of equity using the DDM method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the cost of equity using the SML method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. DDM method % b. SML method %