5. Problem 10.06 (Cost of Common Equity) The future eamings, dividends, and common stock price of Callahan Technologies Inc, are expected to grow 5% per year. Calahan's common stock currenty selis for 127.25 per share; its last dividend was $2,40; and it will pay a $2,52 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 pleces. \% b. If the firm's beta is 1.0, the risk-free rate is 7%, and the average return on the market is 12%, what will be the firmis cost of common equity using the capu approach? Round your answer to two decimal places. c. If the firm's bonds earn a return of 10%, based on the bond-yield-plus-risk-premem approach, what will be fa? Use the judgmental risk premiuen of 4% in your calculations. Round your answer to two decimal piaces. d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of comman equity? Do not round intermediate calculations. Round your answer to two decimal ploces