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19. Calculating the Cost of Equity Ginger Industries stock has a beta of 1.08 ....

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19. Calculating the Cost of Equity Ginger Industries stock has a beta of 1.08 . The company just paid a dividend of $.85, and the dividends are expected to grow at 4 percent. The expected return on the market is 11.3 percent, and Treasury bills are yielding 3.4 percent. The most recent stock price for the company is $72. a. Calculate the cost of equity using the DDM. b. Calculate the cost of equity using the CAPM. c. Why do you think your estimates in (a) and (b) are so different

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