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help me please with correct answers. Thanks!! Attempts: 2 Keep the Highest: 2/4 A-Z...

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Finance

help me please with correct answers. Thanks!!image

Attempts: 2 Keep the Highest: 2/4 A-Z 4. Problem 10.06 (Cost of Common Equity) Office The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 3% per year. Callahan's common stock currently sells for $29.00 per share; its last dividend was $2.00; and it will pay a $2.06 dividend at the end of the current year. . a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the firm's beta is 1.2, the risk-free rate is 3%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. % c. If the firm's bonds earn a return of 9%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places. % d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round intermediate calculations. F two decimal places. % Save Page As... Save Page to Pocket

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