Question: 4. Problem 10.05 (Cost of Common Equity) ebook Problem Walk-Through The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to
4. Problem 10.05 (Cost of Common Equity) ebook Problem Walk-Through The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow $ per year Cala's common stock currently sells for $30.00 per share; its last dividend was $2.00, and it will pay a 52.15 dividend at the end of the current year 3. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your awer to two decimal places d. If the firm's botar is 1.5, the riske free rate is 7%, and the average rohum on the market is 13%, what will be the firm's cost of common equity uting the CAP proti Round your answer to two decimal places B. If the firm's bands eam a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be ? Use the judgmental ink remium or as your calculations. Round your answer to two decimal places % d. If you have equal contidence in the inputs used for the three-approaches, what is your estimate of Collahan's cost of common equity? Do not round entermediate calculations. Round your answer to two decimal places
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